Flipkart-Walmart Deal

US-based retail giant Walmart on Tuesday said its international sales in the third quarter got a boost from the 'Big Billion Days' sales event by its Indian e-commerce arm Flipkart. Walmart, which follows a February-January financial calendar, reported USD 31.5 billion in sales from its international business, a growth of 12.4 per cent on constant currency terms. "Timing of Flipkart's The Big Billion Days (BBD) event benefited growth in Q3 and will impact growth in Q4," Walmart said in its earnings statement. Sales growth of Walmart International, which operates in 18 countries outside the US including India, was "led by Flipkart, Walmex (Mexico), and China", it added. In the third quarter, Walmart International's e-commerce sales grew 43 per cent led by marketplace and store-fulfilled pickup and delivery, it added. Moreover, "advertising business (Walmart International) grew 50 per cent, led by Flipkart," it added. Flipkart's Big Billion Days sales event for the 2024 festive sea

E-commerce major Flipkart India's consolidated net loss widened to Rs 3,413 crore in the financial year 2021-22 despite increase in revenues, according to financial data accessed by business intelligence platform Tofler. The Walmart group-owned firm had reported a net loss of Rs 2,445.6 crore in the previous financial year 2020-21. On a standalone basis, Flipkart's net loss widened to Rs 3,404.3 crore during 2021-22 from Rs 2,444.8 crore in 2020-21. Net total income both on standalone and consolidated basis increased by about 18 per cent to Rs 51,175.7 crore from Rs 43,349.1 crore in FY21. The company's total expenses for the fiscal were reported at Rs 54,580 crore, Tofler said. The company acquired stake in 63Ideas Infolabs, which operates the Ninjacart brand, and 50 per cent stake in Childrenite Private during the year. An email query sent to Flipkart elicited no immediate reply.

The government permits 100 per cent foreign direct investment in food retail for food produced and manufactured in India

The e-commerce company managed to achieve a 63% reduction in losses from Rs 46,895 crore ($6.6 billion) in 2018 to Rs 17,231 crore ($2.42 billion) for the financial year ending March 31, 2019.

But the US retail giant is building a collection of strong businesses through Flipkart, says CEO Doug McMillon

Walmart has said that Flipkart's technology and understanding of online retail would be invaluable to it

Flipkart's sale to Walmart didn't signal that founders of the online retail firm were less patriotic than an earlier generation of business leaders. It meant they were driven by different value system

Flipkart will need $2 bn annual profit to make Walmart investment viable, which will mean yearly revenue of $100 bn

While the physical retail businesses of those like Tata group, Birla, Future and Reliance are doing well, they have failed in their online foray

While growth prospects are bright, any pricing war brought on by the online players will force other retailers to match the same

The emotional farewell post went on to say: "Sadly my work here is done and after 10 years, it's time to hand over the baton and move on from Flipkart"

he Indian e-commerce major is in discussions to sell majority holding to Walmart and an announcement to this effect is likely to be made soon, sources close to the development said

The traders' body took a strong objection to the Walmart-Flipkart deal and demanded the government to form a regulatory authority for e-commerce

More than 30 smaller investors would make $20-200 million because most of them would be exiting after the merger

Among the issues still to be resolved are whether Flipkart's founders will lead the business after the purchase, how much each existing investor sells and what Walmart's final stake will be