US retail giant Walmart on Tuesday said that since reopening of India’s lockdown to curb the covid-19 menace, Flipkart’s gross merchandise value (GMV) has exceeded pre-covid levels.
“Flipkart reopened in mid-May and we saw GMV increasing pre-covid levels,” said Doug McMillon, Walmart’s president and CEO, as part of the retail giant’s second quarter (May-July) earnings call.
Walmart follows the February to January period as its financial year.
“Walmart International’s net sales were $27.2 billion, a decrease of 6.8%. Changes in currency rates negatively affected net sales by approximately $2.4 billion. Excluding currency , net sales would have been $29.6 billion, an increase of 1.6%. Net sales included the effects of the government-mandated closure of the company’s Flipkart business in India for a portion of the quarter, as well as similar actions in markets in Africa and Central America,” said a Walmart statement.
Just last month, Flipkart Group announced that it is set to receive a fund infusion of $1.2 billion led by majority owner Walmart, along with a group of existing shareholders, for its e-commerce business.
The investment valued the Flipkart Group at $24.9 billion in post-money valuation, with funds expected to come across in two tranches over the remainder of the fiscal.
Along with this, the same month, Flipkart Group also acquired 100% stake in Walmart India Pvt Ltd, which also operates the Best Price cash-and-carry business, and has launched Flipkart Wholesale, a new digital marketplace.
Flipkart Wholesale was expected to launch its operations this month, while piloting services for the grocery and fashion segment.
During its first quarter results, Walmart had said that its net sales for its international business was impacted as its Indian subsidiary Flipkart was unable to make non-essential deliveries during the virus lockdown.