Walmart India’s losses widens in FY20 despite 20% rise in revenue

Photo: Walmart

Walmart India Private Limited, which operates 28 wholesale stores under the Best Price Modern Wholesale format, reported a net loss of 299.20 crore ($41million) for the year ended 31 March, 2020.

The retailer’s losses widened compared to the previous financial year. Walmart India, whose wholesale business was recently acquired by e-commerce major Flipkart Group, had reported a net loss of 171.68 crore in FY19, according to financial data accessed by business intelligence platform Tofler.

In FY20, the company’s reported revenues were up 20% year-on-year at 4,926 crore. The company’s total expenses for the fiscal increased 22% at 5,225 crore, Tofler’s report said.

In July, this year e-commerce major Flipkart Group acquired a 100% stake in Walmart India Pvt Ltd, which operates the Best Price cash-and-carry business. These stores typically cater to small businesses, mom-pop stores, and hotels and restaurants that can buy in bulk from these large-format outlets. The company also operates two fulfilment centres in India. In India, it competes with Germany’s Metro Cash & Carry , Thailand’s Lots Wholesale, among others.

In 2018, Walmart Inc. invested $16 billion for a majority stake in Flipkart.

The reverse acquisition of the business-to-business segment of Walmart carried out earlier this year, was aimed at helping Flipkart expand its footprint in the food and grocery segment and strengthen its supply chain, Mint reported earlier.

Prior to the deal announcement, Walmart India had let go of over 50 employees in January as part of a restructuring exercise. The company then announced plans to focus on its omni-channel model.

The article was first published on livemint.com.

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.