Walmart's e-commerce platform, Flipkart, and its digital payment subsidiary, PhonePe, have the potential to emerge as colossal enterprises worth USD 100 billion each, fueled by their impressive growth. This revelation was made by Walmart's Chief Financial Officer, John David Rainey, during an investor conference. Rainey emphasized that the remarkable performance of Flipkart and PhonePe is instrumental in Walmart's ambitious plan to double its gross merchandise volume in foreign markets to a staggering USD 200 billion within the next five years.
While Walmart doesn't publicly disclose specific sales figures for Flipkart and PhonePe, recent statements from company executives have underscored the significance of these two businesses. Walmart's international chief has previously described India's massive population of 1.4 billion people as a "significant" opportunity for the retail giant.
In the most recent quarter, which concluded on April 30, Walmart reported a substantial double-digit sales growth for its Flipkart division. This impressive surge can be attributed to the acquisition of new customers across several cities and a remarkable 50 percent increase in advertising revenue. Valued at over USD 40 billion in 2022, Flipkart ranks among the most valuable startups in India.
Walmart also expressed great enthusiasm for the outstanding performance of PhonePe. The digital payment platform achieved an annualized payment value of USD 1 trillion, primarily driven by the widespread adoption of the Unified Payments Interface—a highly popular real-time payment method in India. As of December, PhonePe commanded an impressive 46 percent share of the payments market, according to the National Payments Corporation of India.
Moreover, PhonePe boasts an extensive user base of 400 million registered customers. In March, Walmart further solidified its position as India's leading payments startup by injecting an additional USD 200 million into PhonePe, effectively valuing the company at USD 12 billion.
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