Flipkart CEO refutes report, says Walmart here to stay

Flipkart on Tuesday vehemently refuted the claim of a Morgan Stanley report that said Walmart may exit its investment in Flipkart, and the Indian market, owing the negative impact of new rules for the e-commerce that came into force on February 1.

“In reality, the report couldn’t be further from the truth. Walmart remains extremely confident in the potential of the Indian market and in Flipkart’s ability to lead the e-commerce space,” Flipkart chief executive Kalyan Krishnamurthy ( pictured) said in an internal communiqué to employees.

Business Standard has seen a copy of the email. Flipkart declined to comment.

Morgan Stanley had said Walmartmay consider walking away from India, akin to what Amazon did in China in 2017, as the new rules have increased the costs of business and added to long-term uncertainty.

“An exit is likely not completely out of the question with the India e-commerce market becoming more complicated,” the report said, adding Flipkart’s losses may rise 20-25 per cent, which may potentially have a bearing on Walmart’s results in the upcoming quarters.

In May last year, the US retailer bought 77 per cent in Flipkart for $16 billion in one of the biggest takeover in the e- commerce space in the world.

“By partnering Flipkart, Walmart has taken a long term view of the opportunities and hence, is unfazed with any short-term hurdles,” Krishnamurthy told employees.