Flipkart boosts Walmart's international ad business in Q1

US retail giant Walmart reported a 20% growth in its international advertising business for the quarter ending April 30, driven primarily by Indian ecommerce marketplace Flipkart.

For the fiscal year ending March 2024, Flipkart Internet, the marketplace arm of Flipkart, had generated nearly Rs 5,000 crore from advertising — surpassing the Rs 3,734 crore earned from marketplace fees.

Walmart International posted net sales of $32.1 billion for the February-April quarter, reflecting a 7.8% year-on-year increase. The growth in net sales (constant currency) was primarily driven by Flipkart, along with the company’s China and Walmex (Mexico and Central America) businesses.

Over the past six months, Flipkart has also expanded its quick commerce business, Minutes, and is currently operating over 300 dark stores (micro warehouses). ET previously reported on the rapid growth of advertising revenue on quick commerce platforms.
However, Walmart International’s operating income for the February-April quarter stood at $1.4 billion, marking a 6.4% decline compared to the same period last year. The retailer attributed the decline to strategic growth investments in Flipkart, Walmex, and Canada.

Last month, Flipkart’s board approved a proposal to shift its domicile from Singapore to India, ahead of its planned IPO in 2026. This comes almost a year after Flipkart raised $350 million from Google as part of a $1 billion funding round led by Walmart.

Walmart’s continued focus on expanding Flipkart’s ad business aligns with its broader strategy of leveraging ecommerce growth in key international markets.