Flipkart: This is what Walmart CEO and CFO have to say on Flipkart – Times of India

Flipkart‘s parent Walmart is happy to see the e-tailer expanding on its positive contribution margin and that it plays a key role in overall gross sales and revenue growth of the US company. In a post earnings call recently, Walmart’s top management including CEO Doug McMillon; and executive vice president and chief financial officer John David Rainey were all praise for Flipkart.
Walmart CEO Doug McMillon on PhonePe and Flipkart separation
“Our fast growing businesses in India, Flipkart and PhonePe, announced a full separation, which will allow both companies to focus on their own growth paths independently and help unlock value for shareholders. Flipkart has continued to strengthen its market leadership position in e-commerce and is entering this year with good momentum.
In December 2022, both Flipkart and PhonePe announced their separation formally and the latter has raised $450 million in new funding since then from investors like General Atlantic, Tiger Global, Ribbit Capital and TVS Capital Funds. The company is aiming to raise around $1 billion in primary capital in this round.
Walmart CEO on Diwali sale
“Q4 sales benefited from successful festive events across our markets. Year-over-year comparisons were negatively impacted by the timing shift of Flipkart’s Big Billion Days event to Q3 this year versus Q4 last year.”
“In India, Flipkart continued its strong momentum through Diwali and other seasonal events. We are particularly pleased to see Flipkart’s positive contribution margin expanding. PhonePe’s recent valuation that Doug talked about was supported by annualized TPV, reaching more than $950 billion, about 50% higher than just one year ago, while also exceeding more than 4 billion monthly transactions,” he added.

Walmart CFO John David Rainey on Flipkart revenue growth
“A lot of our GMV growth, a lot of our revenue growth is coming from, in particular, Flipkart. We see great progress over there. They continue to be a strong player in the market that they operate in. And as I noted in my comments on the call, we’re in much better position right now with respect to some of the investments that we’ve made historically.”
“In e-commerce or any digital platform, you need an infrastructure that you can scale at a low marginal cost. And that’s what Flipkart has done. They’ve invested in that infrastructure over the last three years to where, now, we’re able to see that contribution profit continue to expand. And so, we’re excited about that,” he added.
Globally, Walmart reported $164 billion in total revenue during the fourth quarter, an increase of over 7%. Walmart reported a 17% growth in its US ecommerce business during the quarter.