Flipkart’s Double-Digit Revenue Growth Drives Walmart’s Q1 International Sales

Flipkart’s Double-Digit Revenue Growth Drives Walmart’s Q1 International Sales

SUMMARY

Walmart said it also saw improvement in Flipkart’s contribution profit during the quarter and the ecommerce company continues to expand in Tier-II, III cities

Walmart said its Indian fintech platform PhonePe reached annualised total payment volume of $1 Tn for the first time during April 2022-March 2023 period

Flipkart and PhonePe are becoming a “mutually reinforcing flywheel” of strength for the parent company in the country

Indian ecommerce giant Flipkart saw a double-digit revenue growth in the quarter ended April 30, 2023 (Q1 FY24), helping its parent Walmart post strong international sales growth during the quarter.

Besides India, similar topline growth in China and Mexico helped the retail giant post about 13% year-on-year (YoY) growth in its international sales, on a constant currency basis, to $26.8 Bn in Q1, Walmart said. 

During its earnings call, Walmart said it also saw improvement in Flipkart’s contribution profit during the quarter. It said while Flipkart’s ecommerce platform continues to scale with expansion in Tier-II, III cities, its logistics business Ekart business now has over 35,000 kirana partners. 

As per the company, Flipkart’s new products and services are also witnessing growth. Flipkart Travel, which added bus reservation services to its offering during the quarter, is already capable of offering 1 Mn bus connections to the customers, the company told the investors.

Meanwhile, Walmart said its Indian fintech platform PhonePe reached an annualised total payment volume (TPV) of $1 Tn for the first time during April 2022-March 2023 period.

Impressed with the growth in the Indian market, a Walmart executive said that Flipkart and PhonePe are becoming a “mutually reinforcing flywheel” of strength for the parent company in the country. 

The company also highlighted that PhonePe is enabling 36 Mn merchants online to grow their businesses.

It must be noted that PhonePe recently raised $200 Mn of primary capital from Walmart as part of its $1 Bn fundraise to grow its UPI business and scale up new businesses such as insurance and wealth management.

“A group of us were there (in India) last week and we left even more excited about our opportunities. Flipkart and PhonePe are doing well. Our Walmart tech team there is strong and we have a big opportunity to increase our exports from India across quite a few merchandise categories,” said Doug McMillon, CEO of Walmart.

McMillon recently stated that Walmart was aiming to source $10 Bn worth of Indian goods each Year by 2027.

Overall, Walmart reported better-than-expected consolidated revenue of $152.3 Bn, up 7.6% YoY in Q1 FY24. Its net income stood at $1.67 Bn, or 62 cents per share, during the quarter.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Flipkart’s Double-Digit Revenue Growth Drives Walmart’s Q1 International Sales-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Flipkart’s Double-Digit Revenue Growth Drives Walmart’s Q1 International Sales-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Flipkart’s Double-Digit Revenue Growth Drives Walmart’s Q1 International Sales-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Flipkart’s Double-Digit Revenue Growth Drives Walmart’s Q1 International Sales-Inc42 Media
Flipkart’s Double-Digit Revenue Growth Drives Walmart’s Q1 International Sales-Inc42 Media
You’re in Good company