Tuesday December 10, 2019
Home Lead Story Flipkart Acqu...

Flipkart Acquisition Negatively Impacts Walmart International

Flipkart posted $6.14 billion (Rs 43,615 crore) revenue for the fiscal 2018-19, according to Chennai-based business intelligence platform Paper.vc

0
//
Flipkart Buys Back Shares Worth $350 mn.
New e-commerce norms to impact e-tailers: Flipkart. IANS

The Flipkart acquisition once again negatively impacted Walmart International’s operating income on Thursday which dropped to $600 million in the third quarter ending September from $1.2 billion a year-ago quarter — a massive drop of 46.2 per cent.

Operating income declined 5.4 per cent — or 4.1 per cent in constant currency — due in part to a non-cash impairment charge for Walmart International.

“As expected, the inclusion of Flipkart negatively affected operating income,” the company said in a statement on Thursday.

Net sales at Walmart International were $29.2 billion — an increase of 1.3 per cent.

The inclusion of Flipkart and strength in Walmex and China were partially offset by softness in the UK, said the company.

In the second quarter, the operating income of Walmart’s international operations fell by 29.3 per cent to $893 million while net sales declined marginally to $29.13 billion.

Walmart wrapped up Flipkart’s acquisition for $16 billion in 2018, which made it the world’s biggest e-commerce deal.

The company, however, was bullish on record sales it achieved during Flipkart’s “The Big Billion Day” festive sales in India.

walmart store
Walmart in Fajardo, Puerto Rico. Wikimedia Commons

“We celebrated the first anniversary of Flipkart and PhonePe as part of the Walmart family. It was great to see record sales in India during The Big Billion Days event,” said Doug McMillon, President and CEO, Walmart.

“Looking ahead, we’re prepared for a good holiday season. Our integrated offering with stores and eCommerce delivers value and convenience for our customers,” he added.

The US e-commerce behemoth reported $128 billion in total revenue for third quarter — an increase of $3.1 billion or 2.5 per cent.

The company had net cash provided by operating activities of $14.5 billion for the nine months ended October 31, 2019, which decreased when compared to $17.3 billion for the nine months ended October 31, 2018 primarily due to the timing of vendor payments and US associate payroll, as well as the inclusion
of Flipkart operations.

“We generated free cash flow of $6.8 billion for the nine months ended October 31, 2019, which decreased when compared to $10.3 billion for the nine months ended October 31, 2018 due to the same reasons as the decline in net cash provided by operating activities, as well as $0.8 billion in increased capital expenditures,” Walmart mentioned.

Also Read: Upcoming Smart TV of Nokia gets Certification from BIS

Flipkart posted $6.14 billion (Rs 43,615 crore) revenue for the fiscal 2018-19, according to Chennai-based business intelligence platform Paper.vc.

“The financials reveal how the e-tailer has performed after Walmart acquired 77 per cent of its equity in August 2018 for $16 billion (Rs 1,07,662 crore),” said Paper.vc.

According to the posted financials, the group firm (Flipkart) managed to achieve a 63 per cent reduction in losses to $2.42 billion (Rs 17,231 crore) for the fiscal under review, from the $6.6 billion (Rs 46,895 crore) loss posted in 2017-18. (IANS)

Next Story

Flipkart Leads $60mn Investment in Logistics Platform Shadowfax

"With the new round of capital infusion, Shadowfax plans to invest extensively in building long-term capabilities which are essential to developing an efficient and superior service quality ecosystem in Indian logistics," said Abhishek Bansal, CEO, Shadowfax

0
Flipkart Buys Back Shares Worth $350 mn.
New e-commerce norms to impact e-tailers: Flipkart. IANS

Walmart’s Flipkart has led a $60 million financing round in logistics platform Shadowfax as the online retailer looks to expand hyperlocal delivery capabilities.

This investment is part of a Series D funding that Shadowfax has received from Eight Roads Ventures, Nokia Growth Partners, Qualcomm Ventures, Mirae Asset Naver Fund and World Bank backed IFC.

Flipkart has an existing partnership with Shadowfax to fulfil logistics requirements across various categories in its e-commerce business.

“At Flipkart, we are focused on redefining customer experience, and hyperlocal is a key element to enable this transformation,” Kalyan Krishnamurthy, Chief Executive Officer, Flipkart, said in a statement on Thursday.

amazon, china, flipkart
FILE – A worker removes an advertisement billboard of Indian online marketplace Flipkart, installed along the roadside in Mumbai, India, Oct. 16, 2015. Amazon.com Inc. is concentrating on India and its competition, Flipkart. VOA

“We have seen strong synergies with Shadowfax through our existing engagement with them, and their investments in tech-enabled innovations will help us significantly reduce delivery time and provide superior customer experiences across product categories,” Krishnamurthy added.

Founded in 2015, Shadowfax currently enables delivery of 10 million monthly shipments across diverse segments ranging from hot food to grocery to fashion, electronics and other e-commerce items.

Also Read: Delhi’s Air Quality Still Remains ‘Very Poor’

The company will use the funds to enhance the tech capabilities of the platform, recruit talent, increase the number of shipments to 100 million a month and expand its geographical presence to 1,000 Indian cities, Flipkart said.

“With the new round of capital infusion, Shadowfax plans to invest extensively in building long-term capabilities which are essential to developing an efficient and superior service quality ecosystem in Indian logistics,” said Abhishek Bansal, CEO, Shadowfax. (IANS)