Latest news with #KathrynMcLay
Time of India
29-05-2025
- Business
- Time of India
Quick commerce now accounts for 20% of ecommerce sector in India: Walmart International CEO
Quick commerce now accounts for 20% of India's ecommerce market and is growing at a rate of 50% annually, according to Kathryn McLay , CEO of Walmart International . 'That's a part of ecommerce that we want to be playing in,' she said at the Bernstein Annual Strategic Decisions Conference, reaffirming Walmart 's growing focus on the segment through its Indian arm Flipkart . Amid this push, Flipkart's Indian marketplace entity has received a cash infusion of Rs 2,225 crore (around $260 million) from its Singapore-based parent, according to regulatory filings. The funds come as Flipkart accelerates investments into Minutes, its quick commerce vertical, which is targeting 800 dark stores by the end of 2025. Earlier this month, Flipkart Minutes vice president Kabeer Biswas told ET that the company had already reached the halfway mark on that rollout. McLay also stated that Walmart was not prioritising near-term profitability for its India ecommerce businesses — Flipkart and fashion platform Myntra — over market share and growth. Close on the heels of expanding services to Singapore, Myntra received a cash infusion of Rs 1,062.5 crore ($124 million) from its parent entity. 'We're excited about their growth. We are not so focused on profitability that we would trade off market share and growth for the future,' she said. 'You take the balance of all of that, and we will get there at the right time.' She added that while Flipkart's path to profitability may not be linear, Walmart has achieved success with similar models in other markets — not just at the broader business level, but within individual channels like quick commerce. Walmart had led a $1 billion funding round in Flipkart in 2023, committing $600 million to the round. Despite rapid growth, quick commerce continues to form a modest portion of India's overall retail sector. As ET reported on May 19, six of the country's top fast-moving consumer goods (FMCG) firms — Hindustan Unilever, Britannia, AWL Agri Business (formerly Adani Wilmar), Dabur, Tata Consumer Products, and Marico — reported a combined Rs 4,400 crore in quick commerce sales for FY25, accounting for just 2–4% of their overall revenues. A recent report by HSBC Securities projects the gross order value of India's quick commerce market to touch $35–40 billion by FY26. Flipkart faces stiff competition in the space from the likes of Blinkit (owned by Eternal), Swiggy 's Instamart, Zepto, Amazon, BigBasket (backed by Tata Digital), and Reliance's JioMart. Domicile shift, IPO roadmap, financials Flipkart is also in the process of shifting its domicile from Singapore to India — a move that group CEO Kalyan Krishnamurthy called a 'significant step toward aligning more closely with the economic and regulatory landscape' during a recent townhall. The reverse flip comes ahead of a planned initial public offering in 2026. For FY24, Flipkart Internet reported operating revenue of Rs 17,907.3 crore, a 21% year-on-year increase, while its net loss narrowed by 41% to Rs 2,358 crore. Its fashion vertical Myntra turned profitable for the first time in FY24, posting a net profit of Rs 31 crore compared to a loss of Rs 782 crore in the previous year. Myntra's revenue rose 15% during the fiscal. The platform is also extending its reach beyond India. While facing fresh competition in the local market following Shein's re-entry via a Reliance tie-up, Myntra is expanding to Singapore through Myntra Global. It has also launched M-Now, a rapid delivery service for fashion and home goods.
Economic Times
29-05-2025
- Business
- Economic Times
Quick commerce now accounts for 20% of ecommerce sector in India: Walmart International CEO
ETtech Kathryn McLay, CEO, Walmart International Quick commerce now accounts for 20% of India's ecommerce market and is growing at a rate of 50% annually, according to Kathryn McLay, CEO of Walmart International. 'That's a part of ecommerce that we want to be playing in,' she said at the Bernstein Annual Strategic Decisions Conference, reaffirming Walmart's growing focus on the segment through its Indian arm this push, Flipkart's Indian marketplace entity has received a cash infusion of Rs 2,225 crore (around $260 million) from its Singapore-based parent, according to regulatory filings. The funds come as Flipkart accelerates investments into Minutes, its quick commerce vertical, which is targeting 800 dark stores by the end of 2025. Earlier this month, Flipkart Minutes vice president Kabeer Biswas told ET that the company had already reached the halfway mark on that rollout. McLay also stated that Walmart was not prioritising near-term profitability for its India ecommerce businesses — Flipkart and fashion platform Myntra — over market share and growth. Close on the heels of expanding services to Singapore, Myntra received a cash infusion of Rs 1,062.5 crore ($124 million) from its parent entity. 'We're excited about their growth. We are not so focused on profitability that we would trade off market share and growth for the future,' she said. 'You take the balance of all of that, and we will get there at the right time.' She added that while Flipkart's path to profitability may not be linear, Walmart has achieved success with similar models in other markets — not just at the broader business level, but within individual channels like quick commerce. Walmart had led a $1 billion funding round in Flipkart in 2023, committing $600 million to the rapid growth, quick commerce continues to form a modest portion of India's overall retail sector. As ET reported on May 19, six of the country's top fast-moving consumer goods (FMCG) firms — Hindustan Unilever, Britannia, AWL Agri Business (formerly Adani Wilmar), Dabur, Tata Consumer Products, and Marico — reported a combined Rs 4,400 crore in quick commerce sales for FY25, accounting for just 2–4% of their overall revenues.A recent report by HSBC Securities projects the gross order value of India's quick commerce market to touch $35–40 billion by FY26. Flipkart faces stiff competition in the space from the likes of Blinkit (owned by Eternal), Swiggy's Instamart, Zepto, Amazon, BigBasket (backed by Tata Digital), and Reliance's JioMart. Domicile shift, IPO roadmap, financials Flipkart is also in the process of shifting its domicile from Singapore to India — a move that group CEO Kalyan Krishnamurthy called a 'significant step toward aligning more closely with the economic and regulatory landscape' during a recent townhall. The reverse flip comes ahead of a planned initial public offering in 2026. For FY24, Flipkart Internet reported operating revenue of Rs 17,907.3 crore, a 21% year-on-year increase, while its net loss narrowed by 41% to Rs 2,358 crore. Its fashion vertical Myntra turned profitable for the first time in FY24, posting a net profit of Rs 31 crore compared to a loss of Rs 782 crore in the previous year. Myntra's revenue rose 15% during the fiscal. The platform is also extending its reach beyond India. While facing fresh competition in the local market following Shein's re-entry via a Reliance tie-up, Myntra is expanding to Singapore through Myntra Global. It has also launched M-Now, a rapid delivery service for fashion and home goods.
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Business Standard
29-05-2025
- Business
- Business Standard
Walmart bets on Flipkart to tap India's $1-trillion e-commerce market
Walmart Inc. is betting on India, Mexico, and China to drive the next phase of its international expansion, with a particular focus on scaling e-commerce and omnichannel capabilities in these fast-growing markets. These regions are strategic priorities within its global portfolio, according to Kathryn McLay, President and Chief Executive of Walmart International. The division oversees the Bentonville, Arkansas-based retailer's operations outside the US, including its global online platforms. McLay noted that India, home to 1.4 billion people, represents a major e-commerce opportunity. The country's internet economy is expected to reach $1 trillion by 2030, primarily fuelled by e-commerce. Yet online penetration remains low—just 9 per cent—highlighting significant headroom for growth. To tap into this opportunity, Walmart is continuing to invest in Flipkart, expanding both its core offerings and newer retail formats. 'We see huge opportunities in that market, and we have been growing the Flipkart business,' McLay said during a fireside chat with Bernstein analyst Zhihan Ma at the Bernstein 41st Annual Strategic Decisions Conference 2025 in the US on Wednesday. Walmart entered India in February 2018 through its $16-billion acquisition of Flipkart, which operates as a pure-play online third-party (3P) marketplace. Initially focused on bringing branded items to tier-II and tier-III cities—where consumers previously had to travel to tier-I cities to access products like Levi's—Flipkart concentrated on mobile phones, electronics, and apparel. These core categories have since achieved profitability. As the business has matured, Flipkart has broadened its assortment to meet evolving customer needs. In recent years, quick commerce—defined by delivery windows of 15 minutes or less—has become a dominant trend in India. To address this, Flipkart launched its 'Minutes' business to meet accelerated delivery expectations. The company has established 250 fulfilment centres to support this model, a major shift from its earlier one-to-two-day delivery promise. Today, some Flipkart orders arrive in as little as three minutes. 'It was a one-to-two-day promise. Now we have a fifteen-minute promise—and sometimes we can deliver in as short as three minutes,' said McLay. 'Those capabilities are insane for me. They're kinda mind-blowing.' Quick commerce currently accounts for about 20 per cent of India's e-commerce market and is growing at 50 per cent annually. While Flipkart's core business moves steadily towards profitability, McLay said the company is also strategically investing in quick commerce as part of its broader growth roadmap. Walmart views this expansion as part of a longer-term trajectory rather than a linear path to profitability, supported by proof points from other international markets. Flipkart is also applying global best practices across operations. When quick commerce began gaining traction, Flipkart CEO Kalyan Krishnamurthy looked to Walmart's China operations—specifically Sam's Club's cloud-based fulfilment model, which delivers 1,000 SKUs in under an hour. Flipkart sent a team to study this system and adapted it to Indian needs, aiming to deliver 6,000 SKUs in under 15 minutes. 'When we saw the rise in quick commerce, our CEO of Flipkart asked me where he could learn about speed within the Walmart enterprise. I pointed him to China,' McLay recalled. 'So he sent a team over to the dark-fulfilment centre, and they learned from that. Then they brought it back to India and said: 'A thousand items in under an hour? We want to do 6,000 items in under fifteen minutes.'' These adaptations are now being shared with other markets, including China, demonstrating how knowledge flows in both directions within Walmart's global network. McLay also highlighted Flipkart's approach to profitability. Unlike Walmart's China operations, which are primarily first-party and lack a digital advertising component, Flipkart includes digital advertising as both a revenue stream and a contributor to its profitability profile. The platform is continually adapting to meet evolving customer expectations in India's dynamic market. One of Flipkart's standout verticals is Myntra—its dedicated platform for beauty, apparel, and accessories. Myntra has built strong capabilities in customisation and hyper-personalisation, and is considered a leader in generative AI within Walmart International. For instance, users can input prompts like, 'I'm going to a wedding in Kerala in the summer with mostly twenty-something guests, and it will be semi-formal,' and the platform generates four outfit recommendations tailored to the query. 'One of the hidden gems, I think, in the Flipkart business is Myntra,' said McLay. Flipkart's broader strategy remains focused on strengthening its core e-commerce operations, expanding its quick-commerce offering, and enhancing personalisation through Myntra. Walmart has reiterated that while profitability is a goal, it will not come at the cost of market share or long-term growth.
Time of India
29-05-2025
- Business
- Time of India
Quick commerce now accounts for 20% of ecommerce sector in India: Walmart International CEO
Quick commerce now accounts for 20% of India's ecommerce market and is growing at a rate of 50% annually, according to Kathryn McLay , CEO of Walmart International . 'That's a part of ecommerce that we want to be playing in,' she said at the Bernstein Annual Strategic Decisions Conference, reaffirming Walmart's growing focus on the segment through its Indian arm Flipkart . Amid this push, Flipkart's Indian marketplace entity has received a cash infusion of Rs 2,225 crore (around $260 million) from its Singapore-based parent, according to regulatory filings. The funds come as Flipkart accelerates investments into Minutes, its quick commerce vertical, which is targeting 800 dark stores by the end of 2025. Earlier this month, Flipkart Minutes vice president Kabeer Biswas told ET that the company had already reached the halfway mark on that rollout. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. McLay also stated that Walmart was not prioritising near-term profitability for its India ecommerce businesses — Flipkart and fashion platform Myntra — over market share and growth. Close on the heels of expanding services to Singapore, Myntra received a cash infusion of Rs 1,062.5 crore ($124 million) from its parent entity. 'We're excited about their growth. We are not so focused on profitability that we would trade off market share and growth for the future,' she said. 'You take the balance of all of that, and we will get there at the right time.' Live Events She added that while Flipkart's path to profitability may not be linear, Walmart has achieved success with similar models in other markets — not just at the broader business level, but within individual channels like quick commerce. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Walmart had led a $1 billion funding round in Flipkart in 2023, committing $600 million to the round. Despite rapid growth, quick commerce continues to form a modest portion of India's overall retail sector. As ET reported on May 19, six of the country's top fast-moving consumer goods (FMCG) firms — Hindustan Unilever, Britannia, AWL Agri Business (formerly Adani Wilmar), Dabur, Tata Consumer Products, and Marico — reported a combined Rs 4,400 crore in quick commerce sales for FY25, accounting for just 2–4% of their overall revenues . A recent report by HSBC Securities projects the gross order value of India's quick commerce market to touch $35–40 billion by FY26. Flipkart faces stiff competition in the space from the likes of Blinkit (owned by Eternal), Swiggy 's Instamart, Zepto, Amazon, BigBasket (backed by Tata Digital), and Reliance's JioMart. Domicile shift, IPO roadmap, financials Flipkart is also in the process of shifting its domicile from Singapore to India — a move that group CEO Kalyan Krishnamurthy called a 'significant step toward aligning more closely with the economic and regulatory landscape' during a recent townhall. The reverse flip comes ahead of a planned initial public offering in 2026. For FY24, Flipkart Internet reported operating revenue of Rs 17,907.3 crore, a 21% year-on-year increase, while its net loss narrowed by 41% to Rs 2,358 crore. Its fashion vertical Myntra turned profitable for the first time in FY24, posting a net profit of Rs 31 crore compared to a loss of Rs 782 crore in the previous year. Myntra's revenue rose 15% during the fiscal. The platform is also extending its reach beyond India. While facing fresh competition in the local market following Shein's re-entry via a Reliance tie-up, Myntra is expanding to Singapore through Myntra Global. It has also launched M-Now, a rapid delivery service for fashion and home goods.
