According to the retailer’s chief financial officer, the Flipkart marketplace and PhonePe payments business in India may be $100 billion companies supported by rapid development.
Although Walmart does not break out sales of Flipkart and PhonePe separately, executives have identified the two companies in recent months as important contributors to the company’s achievement of its goal to double the gross merchandise volume it sells in international markets to $200 billion in five years.
The 1.4 billion people in India had previously been referred to as a “significant” opportunity for Walmart’s international division.
A 50% increase in ad revenue and new customers in some cities helped Walmart’s Flipkart company record double-digit sales growth in the most recent quarter that concluded on April 30. Flipkart, one of India’s most valuable firms, has a valuation of more than $40 billion in 2022. Walmart praised PhonePe’s success as being “really impressive” after it reached an annualised payment value of $1 trillion, driven primarily by India’s wildly popular Unified Payments Interface for making rapid, real-time payments.
According to National Payments Corporation of India, PhonePe had 400 million registered users in December and held a 46% share of the payments market. The business received a boost from Walmart in March when it invested a further $200 million at a $12 billion pre-money value, solidifying its status as India’s most valuable payments startup.
The future potential of each of those companies to be worth $100 billion is not irrational, according to Walmart’s Chief Financial Officer John David Rainey.