A recent regulatory filing by Walmart shows, the acquisition of Flipkart may negatively impact its net income this fiscal and also the next. The US retail giant had last month completed the acquisition of 77 per cent stake in Flipkart Group, an Indian-based ecommerce marketplace, for approximately $16 billion. Beginning in the third quarter of fiscal 2018, Walmart will consolidate the financial statements of Flipkart using a one-month lag. The retailer is certainly learning about retail ecosystems and how they work around the world.
According to Douglas McMillon President, CEO and Director, Walmart, acquiring Flipkart, which has a strong management team, presents a unique opportunity. The e-commerce marketplace is expected to generate meaningful losses for at least the next few years, offering investment opportunities for Walmart in future.