Walmart Expects Flipkart And PhonePe To Become India's $100 Billion Businesses

Walmart, the multinational retail corporation, has expressed its confidence in the growth potential of its Indian subsidiaries, Flipkart and PhonePe. The retail giant believes that both companies have the capability to become $100 billion businesses in India, Reuters reported.

Walmart does not break out sales from Flipkart and PhonePe, but executives have identified the two companies as major drivers in fulfilling the company's goal of tripling gross merchandise volume sold in overseas markets to $200 billion in five years.

According to Walmart's international president, India's 1.4 billion people constitute a "significant" opportunity for the retailer.

Walmart reported double-digit sales growth in its most recent quarter ended April 30, buoyed by new shoppers in some cities and a 50% increase in ad purchases. Flipkart is expected to be worth more than $40 billion in 2022, making it one of India's most valuable firms.

PhonePe's achievement of reaching an annualised payment value of $1 trillion, thanks to the Unified Payments Interface, a popular technique in India for making speedy real-time payments, was also praised as "really impressive" by Walmart.

According to the National Payments Corporation of India, PhonePe owned 46% of the payments market in December and has 400 million registered users. In March, Walmart increased its investment in that business by $200 million at a pre-money valuation of $12 billion, consolidating its status as India's most valuable payments startup.

"It is not crazy to think that both those businesses could be $100 billion businesses in the future," Walmart's Chief Financial Officer John David Rainey said.