Walmart International CEO Kathryn McLay has reaffirmed Walmart’s long-term commitment to Flipkart, stating that India’s leading ecommerce platform will prioritize market share and sustainable growth over short-term profitability. Speaking at Bernstein’s 41st Annual Strategic Decisions Conference 2025, McLay emphasized that Flipkart’s growth trajectory remains a central focus for the retail giant.
“We’re excited about their (Flipkart’s) growth. We are not so focused on profitability that we would trade off market share and growth for the future,” McLay said. “So, (when) you take the balance of all of that, we will get there (achieve profitability) at the right time.”
This statement underscores Walmart’s long-term strategy for Flipkart in the highly competitive Indian ecommerce market. With rivals like Amazon and Reliance’s JioMart ramping up their efforts, Flipkart’s growth-oriented approach aims to solidify its leadership while tapping into new revenue streams.
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Growth Over Profit: A Strategic Bet
Flipkart, which was acquired by Walmart in 2018 for $16 billion, has grown to become one of the dominant players in Indian ecommerce. McLay’s comments suggest that Walmart sees Flipkart not just as a near-term business opportunity but as a long-term asset in a rapidly digitizing economy.
Walmart is currently investing in several strategic areas to drive Flipkart’s profitability over time. Key among these are:
- Expansion of core ecommerce operations
Flipkart continues to strengthen its logistics network, enhance customer experience, and deepen its reach in Tier 2 and Tier 3 cities. - Scaling Myntra’s fashion marketplace
Myntra, Flipkart’s fashion arm, is being positioned as a leader in India’s fast-growing online fashion segment. By capitalizing on the increasing preference for online apparel and lifestyle shopping, Walmart aims to boost overall revenue. - Venturing into quick commerce
Recognizing the rise of instant delivery platforms, Flipkart is exploring opportunities in quick commerce—a market that has seen exponential growth in urban areas across India. - Growing digital advertising revenue
Flipkart is also building a robust digital advertising ecosystem, allowing sellers and brands to target users directly on the platform, a strategy that has proven lucrative for global ecommerce giants.
India: A Key Market for Walmart’s Global Vision
India remains one of Walmart’s most strategic markets globally, thanks to its young population, growing middle class, and increasing internet penetration. Flipkart’s deep local insight and widespread brand recognition give it a unique advantage over foreign competitors.
By continuing to invest in growth and innovation, Walmart is signaling confidence in Flipkart’s long-term potential. While profitability remains a goal, the company is clearly not in a rush to sacrifice growth or customer acquisition for short-term gains.
As McLay concluded, Walmart is confident that Flipkart will reach profitability “at the right time”—on the back of a solid foundation of growth, innovation, and market leadership.
