Walmart Inc. is increasing its majority stake in Indian e-commerce giant Flipkart.
The retailer led a new $1.2 billion financing round in the Flipkart Group, the largest e-commerce player in India. In August 2018, Walmart completed its $16 billion investment in Flipkart, making it the company’s majority owner with a 77% share.
"Since Walmart's initial investment in Flipkart, we have greatly expanded our offer through technology, partnerships and new services,” stated Flipkart CEO Kalyan Krishnamurthy. “Today, we lead in electronics and fashion, and are rapidly accelerating share in other general merchandise categories and grocery, all while providing increasingly seamless payment and delivery options for our customers. We will continue innovating to bring the next 200 million Indian shoppers online."
Flipkart, a direct competitor to Amazon, which considers India one of its key global markets, said its monthly active customers figure surged 45% in the financial year that ended in March, compared to the year before, with customers making 30% more transactions. The company said it recently surpassed 1.5 billion visits per month.
“Flipkart continues to leverage its culture of innovation to accelerate growth and enable millions of customers, sellers, merchants and small businesses to prosper and be a part of India's digital transformation," said Judith McKenna, president and CEO of Walmart International. "Kalyan and team have a clear vision and are relentlessly focused on giving Indians frictionless choice in how they shop and sell online. We're excited to see what the future holds as they continue their journey to become India's most trusted e-commerce marketplace."