Leading e-commerce firm Flipkart continues to perform well with sustainable gross merchandise value (GMV) growth at a time when India deals with the second wave of COVID-19, US-based retail giant and the etailer's parent, Walmart, said in its earnings report for the first quarter of 2021-2022.
“At Flipkart, monthly active customers and users are key metrics, and we're performing well,” said C Douglas McMillon, president, chief executive officer and Director, Walmart Inc, speaking at an earnings call.
Brett M Biggs, chief financial officer and executive vice president, added by saying that the company was driving “sustainable e-commerce GMV growth”.
This happens at a time when more and more people are buying goods online in India, following a second wave of the pandemic.
The group's fintech firm, PhonePe, reported a 150 percent growth in annualised total payment value run rate as compared to the previous year.
Walmart International, on the other hand, reported a decline of 8.3 percent in net sales at $27.3 billion. The e-commerce sale, however, increased by 49 percent during the period under review.
“The COVID pandemic continues to create both tailwinds and headwinds for our business. While Q1 was aided by stimulus spending, primarily in the US, certain international markets continue to be negatively affected by the resurgence in COVID cases and related government restrictions and operations, particularly in India and Canada,” said Biggs.
Multiple states in India announced lockdown with the rise in the number of COVID cases allowing e-commerce companies to only deliver essential goods in April.
Walmart also said that owing to the second wave of the pandemic, the past several weeks have been more challenging in some countries and it was keeping India, besides Canada, Chile and South Africa, on priority.
“Supporting our associates is our primary focus, but we're also investing our resources to support the countries as we find opportunities to do so. In India, we're donating oxygen concentrators and PPE and providing financial support," said McMillon.
The company is also facilitating vaccinations for its associates and their family members, besides the contractors of Flipkart and PhonePe, which includes over 200,000 people.
"Across the countries where we operate, we'll keep looking for more places to make a difference. This pandemic won't be over until it’s over for everyone," said McMillon.
Referring to the recent announcements by Flipkart on the acquisition of online travel agency Cleartrip and its partnership with Adani Group, Walmart said these moves underscored its commitment to transform customer experience through digital commerce.
"Our growing base of customers means we need to continue to add new capabilities, including areas such as logistics and data storage. The recently announced partnership with Adani Group will help us do just that," said McMillan.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
