Walmart International is taking a measured approach to Flipkart’s growth, prioritising market share and long-term opportunity over short-term profitability. Speaking at the Bernstein 41st annual strategic decisions conference, Walmart International president and CEO Kathryn McLay said the company is committed to scaling Flipkart sustainably rather than rushing toward immediate returns.
“We are not so focused on profitability that we would trade off market share and growth for the future,” McLay said. “We will get there at the right time.” Her comments reflect Walmart’s broader strategy of investing in core growth markets, like India, China, and Mexico, where it sees significant potential. In particular, McLay pointed to India’s $1 trillion e-commerce opportunity, driven by a vast population and low current online penetration of just 9%.
Since Walmart’s acquisition of Flipkart in 2018, the platform has made notable progress, with key categories such as mobile phones, electronics, and apparel already turning profitable. Yet the company continues to pour resources into high-growth segments, especially quick commerce, in order to expand its market presence. Quick commerce now accounts for about 20% of India’s e-commerce sector and is growing at a rapid 50% annually.
Flipkart has built 250 fulfillment centres to power its “Minutes” delivery business, shifting from one- to two-day delivery to ultra-fast services. This transformation, McLay said, is part of a broader multi-pronged strategy that includes strengthening Flipkart’s core offerings, enhancing the Myntra platform, and expanding its digital advertising arm.
Myntra, Flipkart’s fashion and beauty subsidiary, is emerging as a standout success. McLay noted its pioneering use of generative AI to deliver hyper-personalised shopping experiences. Customers can input complex prompts and receive full outfit suggestions on clothing, accessories, and makeup, tailored to their preferences and transaction history. This level of engagement is helping Myntra build deeper loyalty among its user base.
McLay also credited Walmart’s global network for Flipkart’s evolving strategy. When quick commerce gained traction, Flipkart’s team studied Walmart China’s model before adapting it for the Indian market. Their ambition, McLay said, expanded the challenge: “They took it back to India and said, okay. A thousand items in under an hour? We want to do 6,000 items in under fifteen minutes.”
Unlike Walmart’s China business, Flipkart also leverages digital advertising as a revenue driver, further contributing to its financial sustainability. With Walmart International generating more than $120 billion in net sales and $5.5 billion in Ebit, India remains central to its international ambitions. McLay emphasised that these operations are not just supporting top-line growth but also adding to Walmart’s overall profitability.