Walmart’s Quick Commerce Gamble in India

Walmart is betting big on India’s booming quick commerce market, but the push is coming at a cost. The US retail giant, which owns Flipkart, Myntra and PhonePe, reported that its international gross profit rate declined in the June quarter, weighed down by rising investments in 15-minute and 30-minute fulfilment models.

Profitability vs Growth Challenge

CFO John David Rainey admitted that strategic price cuts and expanding delivery capabilities in India are adding pressure on margins. Still, India remains one of Walmart’s fastest-growing markets, with Flipkart and Myntra helping deliver a 10.5% jump in international revenue in Q2.

Kathryn J McLay, President & CEO of Walmart International, highlighted the growing scale of operations: Flipkart now has 300 micro-fulfilment centres (MFCs) ensuring 15-minute delivery, while Myntra has 60 MFCs to complete orders in under 30 minutes.

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Heavy Competition & Investments

The sector is highly competitive with Blinkit, Instamart, Zepto and Amazon Now also investing aggressively in infrastructure and discounts. To stay ahead, Walmart has infused fresh capital into its Indian arms:

• Flipkart raised ₹2,225 crore in May 2025, following earlier rounds totalling over ₹5,600 crore since 2024.

• Myntra secured $125 million in May, strengthening its fashion commerce fulfilment.

Market Insights & Update

While margins are under pressure, analysts believe short delivery times could secure long-term leadership for Flipkart and Myntra. The festival season demand will test the efficiency of these rapid networks. However, the balancing act between growth and profitability remains Walmart’s biggest challenge in its international portfolio.

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