Walmart's reverse merger with Flipkart may bulk up valuations ahead of IPO

The reverse merger may bulk up valuations ahead of an IPO in two years, but questions about the performance of the wholesale business remain

When Walmart India held a town hall meeting at its Gurugram headquarters on July 23 to announce a reverse merger with Flipkart, some 4,000 employees were taken aback by the group’s consolidation move during the pandemic. Although this deal had been in the works after the American retail major Walmart acquired a majority stake in Flipkart for $16 billion in 2018, the timing of the announcement was unusual when a large part of the organisation is still working from home due to Covid-19. But as an analyst pointed out, businesses often take critical steps in extraordinary times.

The two immediate