Global advertising business grew nearly 30%, led by Walmart Connect in the US and Flipkart advertising: Walmart
Impressed by how Flipkart is innovating for customers and driving growth: Walmart CFO
Flipkart continues to meet our expectations and the team is gearing up for Big Billion Days: Walmart
American retail giant Walmart on Tuesday (August 16) said that its global advertising business surged in the quarter ending July 2022, largely on the back of strong performances by Flipkart and the company’s US-based advertising arm.
“Global advertising business grew nearly 30%, led by Walmart Connect in the US and Flipkart advertising,” the company said in its quarterly Q2 report.
The retail major also had positive words for its ecommerce offering, saying Flipkart continues to meet its expectations.
“Flipkart continues to meet our expectations and the team is gearing up for Big Billion Days. I travelled to India last month and was impressed by how the Flipkart and PhonePe teams are innovating for the customer and driving growth,” Walmart chief financial officer John David Rainey said.
On the performance of its ecommerce vertical, Walmart said that ecommerce net sales contributed 19% of total net sales in the international market.
During an earnings call, Walmart executives also said that Flipkart’s spun off fintech arm PhonePe is looking to strengthen its financial services segment.
Walmart owns both ecommerce major Flipkart and fintech giant PhonePe
While Walmart registered double digit growth in key markets such as Mexico, Canada and China, it did not divulge the details of its performance in India. The company reported a 8.4% growth in its total revenue to $153 Bn in the second quarter of the financial year 2022-23 (FY23). Its international sales also rose 5.7% to $24.4 Bn in the quarter ended July 2022.
The growth was partially driven by rising inflation that has pushed up prices across the globe.
Flipkart primarily competes with the likes of US-based ecommerce giant Amazon and homegrown Snapdeal in India.
Of late, Flipkart has been under a lot of scrutiny. Trade bodies such as the Confederation of All India Traders (CAIT) have called for action against the ecommerce player citing deep pricing tactics and anti-competitive behaviour of the company.
The situation has been compounded by the recent crackdown by authorities on ecommerce marketplaces. In May, it was reported that the investigative arm of the CCI was reviewing documents that suggested financial dealings between ecommerce platforms, including Flipkart, and their preferred sellers.
According to an Inc42 report, India’s addressable ecommerce opportunity is projected to reach $200 Bn by 2026. Besides, the number of ecommerce shoppers in India surged past 140 Mn in 2021, as per the report.