Flipkart and PhonePe on Track to Achieve $100 Billion Valuation in India, Reports Walmart CFO
In an investor conference held on Wednesday, the Chief Financial Officer of Walmart disclosed that the company’s Flipkart marketplace and PhonePe payments business in India have the potential to reach a staggering $100 billion valuation. With robust growth driving these ventures, Walmart is optimistic about their future prospects.
Although Walmart does not provide specific figures for Flipkart and PhonePe’s sales, executives have recently emphasized the significance of these two businesses in achieving their goal of doubling the gross merchandise volume from foreign markets to $200 billion within five years.
Walmart’s international chief has recognized India’s enormous population of 1.4 billion as a lucrative opportunity for the retail giant.
During the last quarter ending on April 30, Walmart reported double-digit sales growth for Flipkart, attributing it to an influx of new shoppers in certain cities and a remarkable 50% surge in ad sales. In 2022, Flipkart was valued at over $40 billion, establishing itself as one of India’s most valuable startups.
Additionally, PhonePe’s performance has been described as “truly impressive” by Walmart, as it achieved an annualized payment value of $1 trillion, primarily driven by the Unified Payments Interface, a highly popular method for instant real-time payments in India.
According to the National Payments Corporation of India, PhonePe held a dominant 46% share of the payments market in December and boasts an impressive user base of 400 million registered users. In March, Walmart further bolstered PhonePe by injecting an additional $200 million at a pre-money valuation of $12 billion, solidifying its position as India’s most valuable payments startup.
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Walmart’s Chief Financial Officer, John David Rainey, stated, “It is not unreasonable to envision both these businesses becoming $100 billion enterprises in the future.”
With Flipkart and PhonePe exhibiting exceptional growth and promising potential, Walmart remains optimistic about their prospects in India’s thriving market.
About Flipkart:
Flipkart Private Limited, a prominent e-commerce company, is headquartered in Bengaluru, India, and operates as a private limited company incorporated in Singapore.
About PhonePe:
PhonePe, an Indian company specializing in digital payments and financial services, is headquartered in Bengaluru, Karnataka, India. It was established in December 2015 by Sameer Nigam, Rahul Chari, and Burzin Engineer. The PhonePe app, which operates on the Unified Payments Interface, was launched in August 2016.
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