At an investor conference, Walmart’s Chief Financial Officer, John David Rainey has said that Walmart’s Flipkart marketplace and PhonePe payments business in India has the potential to become USD 100 billion businesses due to their strong growth.
While specific sales figures for Flipkart and PhonePe are not disclosed by Walmart, the company has emphasised the significance of these two businesses in achieving its target of doubling the gross merchandise volume to USD 200 billion in foreign markets within five years.
Walmart’s international chief has previously highlighted the immense opportunity presented by India’s population of 1.4 billion people.
In the recent quarter ending 30 April, Walmart reported double-digit sales growth for its Flipkart business, attributing it to new shoppers in certain cities and a 50 per cent increase in advertising sales. Flipkart, valued at over USD 40 billion in 2022, is considered one of India’s most valuable startups.
Regarding PhonePe, Walmart expressed satisfaction with its performance, noting that it achieved an annualised payment value of USD 1 trillion. This success was driven by the Unified Payments Interface, a widely popular method in India for making real-time payments.
PhonePe currently holds a 46 per cent share of the payments market, according to the National Payments Corporation of India, and boasts 400 million registered users. In March, Walmart further solidified PhonePe’s position as India’s most valuable payments startup by injecting an additional USD 200 million, valuing the business at USD 12 billion.
Rainey expressed optimism, stating that it is not unreasonable to envision both Flipkart and PhonePe becoming USD 100 billion businesses in the future.
Overall, Walmart sees tremendous growth potential in Flipkart and PhonePe, buoyed by their strong performances and India’s thriving consumer market.