Walmart Continues To Bet On Flipkart As Ecommerce Giant Delivers Another Strong Quarter In Q2

Continuing its strong performance, Flipkart delivered strong gross merchandise value (GMV) and sales growth in the second quarter of the financial year 2023-24 (FY24), Walmart’s chief financial officer John David Rainey said during the US-based retail giant’s earnings call. 

Without disclosing the numbers, Rainey said Flipkart remains focused on delivering continued contribution profit improvement while also expanding the ecosystem of its products and services like advertising, travel, and health care.

As per Walmart’s financial statement for Q2 FY24, its international business clocked net sales of $27 Bn in the quarter on a constant currency basis as against $24.4 Bn in the corresponding period of the previous fiscal. In Q1 FY24, the international business’ net sales stood at $26.8 Bn.

Walmart said that this strong growth in net sales in its international business was led by Flipkart and China’s Walmex.

“Flipkart’s consistent progress in performance reinforces our confidence in the long-term value of this business,” said Rainey, adding that Flipkart is the leading marketplace in India, which is currently leading the “largest digital transformation in the world”.

Last month, Walmart acquired Tiger Global Management’s stake in Flipkart for $1.4 Bn, giving the hedge fund an exit from the Indian ecommerce startup.

Earlier, Walmart said that Flipkart witnessed double-digit revenue growth in Q1 FY24. Recently, Rainey also stated that both Flipkart and PhonePe have the potential to become $100 Bn businesses in the future.

Speaking about PhonePe’s performance, Rainey said during the Q2 FY24 earnings call that the fintech major continued to impress with its strong and consistent performance. 

PhonePe’s annualised total payment volume (TPV) surpassed $1.15 Tn during the reported period. It also processed over 5 Bn transactions in a single month for the first time, said  Walmart.

PhonePe’s annualised TPV reached $1 Tn for the first time during April 2022-March 2023 period.

On the back of its growing business, PhonePe’s revenue crossed INR 1,600 Cr mark in FY22 while its loss stood at INR 2,013 Cr. PhonePe continues to be one of the top UPI transaction platforms.

The startup has started expanding its product line in the past few months. Recently, it also forayed into the merchant lending space to take on fintech giant Paytm.

Walmart’s consolidated revenue grew 5.4% year-on-year on a constant currency basis to $161.6 Bn in Q2 FY24.