Walmart Believes Flipkart and PhonePe Could Be $100 Billion Businesses in India
Written by Sanjay Kumar
- Walmart predicts $100 billion potential for Flipkart and PhonePe in India due to strong growth.
- Flipkart’s double-digit sales growth and $40 billion valuation highlight its success as a valuable startup in India.
- Regarding PhonePe, Walmart praised its remarkable performance.
Flipkart | Phonepe |
Founders: Binny Bansal, Sachin Bansal | Founders: Sameer Nigam, Burzin Engineer, Rahul Chari |
Founded: October 2007, Bangalore | Founded: 2015 |
CEO: Kalyan Krishnamurthy (Jan 2017–) | CEO: Sameer Nigam (Dec 2015–) |
Revenue: 61,836 crores INR (US$7.7 billion, 2022) | Revenue: 1,646 crores INR |
Parent organization: Walmart | Parent organization: Walmart |
Subsidiaries: Myntra, Ekart, Flipkart Health+, MORE | Subsidiaries: WEALTH TECHNOLOGY & SERVICES PVT. LTD, MORE |
At an investor conference, Walmart’s Chief Financial Officer, John David Rainey, stated that Walmart’s Flipkart marketplace and PhonePe payments business in India has the potential to become $100 billion businesses, driven by their strong growth.
While Walmart does not disclose specific sales figures for Flipkart and PhonePe, company executives have highlighted these two businesses as crucial drivers in achieving their goal of doubling the gross merchandise volume in foreign markets to $200 billion within five years.
Walmart’s international chief has previously emphasized the immense opportunity presented by India’s population of 1.4 billion, referring to it as a “significant” market for the retailer.
In the most recent quarter ending April 30, Walmart reported that Flipkart experienced double-digit sales growth, benefiting from new customers in certain cities and a 50% increase in ad sales. Flipkart was valued at over $40 billion in 2022 and is considered one of India’s most valuable startups.
Regarding PhonePe, Walmart praised its remarkable performance, achieving an annualized payment value of $1 trillion primarily through the Unified Payments Interface, a highly popular method for instant real-time payments in India. PhonePe commanded a 46% share of the payments market in December, as reported by the National Payments Corporation of India, and boasted 400 million registered users. To further solidify its position as India’s most valuable payments startup, Walmart infused an additional $200 million into PhonePe in March, valuing the company at $12 billion before the investment.
John David Rainey remarked that envisioning both Flipkart and PhonePe as $100 billion businesses in the future is not an unreasonable notion.
In conclusion, Walmart sees immense potential in its Flipkart marketplace and PhonePe payments business in India, projecting them to become $100 billion businesses supported by robust growth and market opportunities. With Flipkart’s impressive sales growth and valuation, and PhonePe’s dominance in the payments market backed by substantial user base and transaction volume, Walmart is strategically positioning itself for success in India’s thriving e-commerce and digital payment sectors.
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