E-commerce giant Walmart has clocked 1.3 per cent increase in net sales in its international business at $29.6 billion in the third quarter ended October 31, supported by strong results of Flipkart and PhonePe that saw “all-time high” monthly active users.
The US-based company had picked up a majority stake in the Indian e-commerce major, Flipkart, for $16 billion in 2018. Earlier this year, Walmart led a new $1.2 billion financing round that valued Flipkart at $24.9 billion.
In a statement, Walmart said its ‘international’ segment’s net sales were at USD 29.6 billion, an increase of 1.3 per cent, and that changes in currency rates had negatively affected net sales by approximately $1.1 billion.
“Excluding currency, net sales would have been USD 30.6 billion, an increase of 5 per cent, led by Flipkart, Canada and Walmex. Strong growth in net sales at Flipkart was helped by a record number of monthly active customers,” it added.
During the earnings call too, Walmart President, CEO and Director C Douglas McMillon noted the strong performance of its India units. “In India, Flipkart and PhonePe had strong results for the quarter. The number of monthly active customers for these platforms is at an all-time high,” he said.
The strong growth for Flipkart and its payment app, PhonePe, have come on the back of ‘Big Billion Day’ sales (held from October 16-21). E-commerce companies in general are witnessing strong growth in their business amid the pandemic as shoppers turn to digital platforms to maintain social distancing.
“Flipkart continues to perform well and recently completed its best-ever Big Billion Day sales event in October. Their third quarter Gross merchandise value (GMV) continued to reflect strong demand post-COVID lockdowns with significant growth in monthly active customers,” Walmart Chief Financial Officer and Executive Vice President Brett M Biggs said.