Walmart Inc. (NYSE:WMT) has been diligently working on strengthening its e-commerce operations both in the United States and internationally. The retail giant, which previously invested in Flipkart in 2018, has now acquired Tiger Global’s stake in the prominent Indian e-commerce platform, according to reliable sources.

The deal reportedly involved Walmart paying $1.4 billion for Tiger Global’s stake in Flipkart, valuing the e-commerce platform at an impressive $35 billion. This move reflects Walmart’s strong belief in Flipkart’s growth potential and its commitment to the promising Indian market.

In the first quarter of fiscal 2024, Walmart’s International segment experienced a significant 12.9% growth in net sales at constant currency, driven by an impressive performance from Flipkart, Walmex, and China. Notably, the segment’s e-commerce sales surged by 25%, fueled by the strength of store-fulfilled orders and advertising initiatives. During the earnings call for the first quarter, Walmart’s management expressed their satisfaction with Flipkart and PhonePe’s performance, reaffirming their confidence in the opportunities presented by the Indian market.

Walmart’s focus on e-commerce expansion has been evident, with global e-commerce sales constituting more than 13% of its total sales by the end of fiscal 2023. The company has been actively pursuing various e-commerce initiatives, including strategic acquisitions, partnerships, and improvements in delivery and payment systems.

In the first quarter of fiscal 2024, Walmart’s e-commerce sales achieved a remarkable 26% global growth, driven by its omnichannel strength, particularly in the areas of pickup and delivery. Additionally, the company’s U.S. e-commerce sales witnessed a significant 27% increase, primarily attributable to the success of its pickup and delivery services as well as its advertising efforts. Sam’s Club also experienced a surge of 19% in e-commerce sales, largely due to the strong performance of its curbside pickup services.

Walmart’s continuous efforts to innovate its supply chain and expand its capacity have led to the introduction of various businesses such as Walmart GoLocal, Walmart Connect, Walmart Luminate, Walmart+, Spark Delivery, Marketplace, and Walmart Fulfillment Services. Furthermore, the company’s investment in technology-driven fashion platform Zeekit, as well as contracts with Symbotic, Shopify, Green Dot, and Microsoft, and acquisitions of ShoeBuy, Moosejaw, and Bonobos, demonstrate its commitment to enhancing its digital capabilities. Moreover, Walmart is aggressively expanding its presence in the flourishing online grocery space, a significant contributor to its e-commerce sales.

To strengthen its delivery services, Walmart has engaged in strategic partnerships with Salesforce and FedEx for improved delivery and pickup options. The company has also explored cutting-edge technologies, including drone delivery pilots in collaboration with Flytrex and Zipline, and a pilot program with Cruise for grocery delivery via self-driven all-electric cars. Additionally, Walmart introduced the Walmart+ membership program and partnered with DroneUp, HomeValet, Point Pickup, Roadie, and Postmates to enhance its delivery services. The company’s store and curbside pickup options have also proven to be popular among customers, with Walmart U.S. boasting more than 4,600 pickup locations and over 3,900 same-day delivery stores as of the first quarter of fiscal 2024.

With its increased stake in Flipkart, Walmart is poised to further strengthen its e-commerce business. Over the past six months, Walmart’s stock has demonstrated solid growth, rallying 11.1%, outperforming the industry’s growth rate of 10.6%.

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