The acquisition of Flipkart by Walmart may negatively impact the net income of the latter this fiscal and also the next, said Walmart in its recent regulatory filing.
Last month, Walmart said it completed the acquisition of 77% stake in Flipkart Group, an Indian-based e-commerce marketplace, for approximately $16 billion.
More interest expense
“We also expect the ongoing operations of Flipkart to negatively impact fiscal 2019 and 2020 net income, including additional interest expense,” Walmart said.
Speaking at an investors’ meet in the U.S., Douglas McMillon president, CEO and director, Walmart, said they were learning about retail ecosystems and how they work around the world.
“We’re learning a lot from China. We’ll be learning even more from India. And, we basically want to be in places that have a tremendous opportunity, which is what led us to Flipkart in India,” he said.
