Walmart has expressed optimism about the potential of Flipkart’s online retail and PhonePe’s payments business in India. The company’s CFO, John David Rainey, stated at an investor conference that both these businesses could become $100 billion enterprises in the future. While Walmart does not disclose specific sales figures for Flipkart and PhonePe, the company sees them as crucial drivers in achieving its goal of doubling its foreign market gross merchandise volume to $200 billion within five years.
Flipkart, according to Walmart’s CEO, presents a significant opportunity in India, with double-digit sales growth reported in the latest quarter. The online retailer experienced a 50% increase in ad sales, driven by new shoppers in certain cities. Valued at over $40 billion in 2022, Flipkart is considered one of India’s most valuable startups.
PhonePe, Walmart’s payment arm, has also performed impressively, recording an annual payment volume of $1 trillion through the Unified Payments Interface (UPI), a popular real-time transaction method in India. According to the National Payments Corporation of India, PhonePe controlled a 46% share of the payments market in December 2022 and boasts over 400 million registered users. Walmart’s additional investment of $200 million in PhonePe further solidified its position as India’s most valuable payments startup.
