Key insights
- Walmart's Flipkart plans to enter India's ticketing and food delivery markets, intensifying competition with established players like BookMyShow and Zomato. This move occurs as Flipkart prepares for an IPO, but the expansion into low-margin sectors could strain resources and delay profitability, indirectly impacting Walmart's overall financial performance and investor sentiment.
By Kritika Lamba, Aditya Kalra and Chandini Monnappa
BENGALURU/NEW DELHI, April 17 (Reuters) - Walmart-owned Indian e-commerce firm Flipkart plans to sell movie and concert tickets in India, moving into a fast-growing space driven by consumers spending more on entertainment, two sources familiar with the matter said.
India's live events and ticketing market has gathered pace over the last year, as demand for large-scale concerts, international tours and sporting spectacles surges, drawing tens of thousands of fans across major cities, led by the country's lucrative cricket calendar.
One of the sources said Flipkart was aiming to launch into the market in May, pitting it against Accel-backed BookMyShow and Zomato's District to take advantage of rising disposable incomes and wider smartphone use in the world's most populous nation.
Flipkart is also preparing to pilot food delivery from May, the second source said, adding that timelines could change as plans evolve.
The company did not respond to a request seeking comment.
Flipkart has been laying the groundwork for an initial public offering in India, including shifting its holding company back to the country, reshuffling senior management and strengthening business units such as fashion arm Myntra.
India's online ticketing and food delivery leaders have scaled up through heavy spending and deep discounts. Flipkart's plans would take it into fiercely competitive, low-margin sectors dominated by entrenched rivals.
Years of investor-funded expansion have left India's food delivery market dominated by Zomato and Swiggy, with smaller rivals squeezed out and profitability still elusive despite strong urban demand.
Founded in 2007 as an online bookseller, Flipkart competes with Amazon in India's growing e-commerce market. It was valued at about $37 billion in 2024, when Alphabet's Google bought a $350 million stake, following Walmart's $16 billion controlling acquisition six years earlier.
(Reporting by Kritika Lamba, Aditya Kalra and Chandini Monnappa; Editing by Dhanya Skariachan and Elaine Hardcastle)