When you hear the words Walmart, “e-commerce” and “India,” you might immediately think of Flipkart. However, this e-commerce company has expanded well beyond books. From its humble beginnings, it has grown to be one of the largest online retailers in the world. Today, its product offerings span from fashion and groceries to home essentials and lifestyle items. Read on to learn more about this e-commerce company. We’ll also touch on its business model and financial, as well as its growth strategy.
Walmart’s acquisition of Flipkart
With Walmart’s acquisition of Flipkart, the e-commerce giant will expand its reach in India. Founded in 2004, Flipkart is one of the largest players in the Indian e-commerce market. It has raised eyebrows among Indian small shopkeepers by providing a platform where people can buy and sell products online. But Walmart’s decision to acquire Flipkart raises more questions than answers.
The deal is expected to generate wealth in the thousands of crores for employees and shareholders, while also giving Walmart a foothold in the ecommerce market. Walmart has plans to integrate Flipkart with its supply chain for agri-commodities. However, the deal could be fraught with risk. Walmart is already on a tight margin, and it could overpay for the company. The company could also lose money if the acquisition is unsuccessful.
Company’s growth strategy
While the rapid growth of Amazon has been an ongoing threat to the company’s survival, the company has also proven that it has a solid long-term business strategy. Last year, Walmart announced it was buying 77 percent of Flipkart for $16 billion. By acquiring the company, Walmart will gain access to the burgeoning Indian commerce market, which is expected to grow to USD 200 billion by the end of the decade.
The online retailer is trying to enter the payment card industry. Along with Paytm, Flipkart is also stepping into the payments market with Ola and Amazon. Ola, for example, recently partnered with the State Bank of India to launch Ola Money-SBI Credit Card, which will give Ola customers convenience. Meanwhile, Amazon has teamed up with ICICI Bank to launch its Amazon Pay Credit Card.
As a consumer, you may wonder what the Business model of Flipkart is. Flipkart is one of the most important e-commerce sites in the world and has become an essential part of our lives. They have great service and are the owner of 40% of the e-commerce market in India. They know their clients and customers very well. We will also learn about Flipkart’s competitors and their business model.
Among the most important aspects of the Flipkart website are the features it offers to its customers. First, customers can use the Flipkart mobile application and web application to find products they are looking for. In addition, the company offers discounts on products, making it easier for customers to shop on the website. It also has an integrated mobile application for smartphone and tablet users. In addition, Flipkart offers a variety of different payment options, including a no-fee option.
The latest financial results of Flipkart India Private Limited revealed that the company has posted revenues of Rs 43,357 crore for FY21, up by 25.7% YoY. The company reported a net loss of Rs 2,445 crore for FY21. Total expenses were Rs 45,801 crore, a 12.5% increase from FY19. Revenues from wholesale unit accounted for 85% of the total revenue of the marketplace unit.
Walmart has pumped in 16 billion dollars for Flipkart and has a 30% stake in the company. Considering that Walmart is waging a trade war with Amazon, they pumped in more money. But this deal did not change the basic structure of Flipkart. The company also still has 30000 employees. And Walmart has been working hard to distance itself from WS Retail. However, it has not changed the business model of the company.