Flipkart and Flipkart Minutes were highlighted in Walmart’s Q1 FY27 commentary for driving advertising growth, improving profitability and rapid delivery expansion in India
“Having deliveries in international, and Flipkart in particular at 13 minutes, is really impressive," said Walmart CEO John Furner
The commentary comes as Walmart reportedly pushes Flipkart to prioritise EBITDA breakeven ahead of its IPO
Flipkart
and its quick commerce arm Flipkart Minutes featured in Walmart’s Q1 FY27 earnings commentary as the global retail giant shed light on the platform’s rapid delivery expansion in India.
The retailer highlighted the ecommerce major’s role in driving advertising momentum and improving profitability during the quarter.
In a post-earnings call, Walmart president and CEO John Furner said Flipkart now operates more than 800 micro-fulfilment centres for Flipkart Minutes in India, with average delivery times of under 13 minutes.
“Having deliveries in international, and Flipkart in particular at 13 minutes, is really impressive,” Furner said.
Walmart CFO John David Rainey added that Flipkart was delivering orders in under 13 minutes across more than 30 Indian cities.
Walmart delivered more than 3.5 Bn same-day or next-day units globally during the quarter, CEO Furner said, underscoring the retailer’s push toward faster fulfillment. China alone delivered more than 500 Mn units, with nearly 75% arriving within one hour, he added.
Walmart International’s net sales grew 18% YoY to $35.1 Bn during the quarter ended April 30. On a constant currency basis, sales rose 10.1% to $32.8 Bn.
International ecommerce sales jumped 27% YoY, while advertising revenue increased 32%, driven by continued momentum at Flipkart. Operating income for the international business rose 23.9% to $1.6 Bn, helped by lower ecommerce losses and changes in business mix.
Overall, Walmart’s net sales rose 7.1% to $175.7 Bn in Q1, while operating income increased 5% to $7.49 Bn.
Walmart’s ROI stood at 14.9%, partially impacted by a non-cash share-based compensation charge at PhonePe during the trailing 12 months.
The commentary comes days after it was reported that Walmart, which owns an 80% stake in Flipkart, asked the ecommerce major to prioritise EBITDA breakeven in FY27 and pause fundraising efforts.
Flipkart, which has long been eyeing a public listing, has deferred its IPO plans till at least next year as it focuses on profitability before going public. Its proposed $2 Bn-$2.5 Bn pre-IPO funding round has also reportedly been put on hold to avoid distracting leadership from margin improvement efforts.
The push for profitability comes even as Flipkart continues to aggressively scale Flipkart Minutes amid intensifying competition in India’s quick commerce market. The company is targeting 1,200 dark stores in the near term.
Flipkart Minutes, which was launched in August 2024, competes with rivals including Eternal’s Blinkit, Swiggy’s Instamart, Amazon Now, Zepto, Reliance Retail’s JioMart and BigBasket.
Besides quick commerce, Flipkart is also reportedly exploring new verticals, including a standalone food delivery app and movie and live event ticketing services. The company is expected to pilot its food delivery service in Bengaluru around June, with a wider launch planned by the end of 2026 or early next year.
Source: Inc42 - Startups
