Flipkart and PhonePe, two prominent players in India’s e-commerce and digital payments sector, are on track to achieve remarkable milestones as they have the potential to become $100 billion businesses, according to Walmart’s Chief Financial Officer, John David Rainey. During an investor conference, Rainey expressed confidence in the future growth of both Flipkart and PhonePe, highlighting their significance in Walmart’s ambitious goal of doubling the gross merchandise volume in foreign markets to $200 billion within five years.
While specific sales figures for Flipkart and PhonePe were not disclosed by Walmart, the retail giant has consistently recognized these businesses as key drivers in its expansion plans. Flipkart experienced double-digit sales growth in the recently ended quarter, attributed to an influx of new shoppers in select cities and a significant 50% surge in advertising sales. With a valuation exceeding $40 billion in 2022, Flipkart has firmly established itself as one of India’s most valuable startups, reshaping the e-commerce landscape through its innovative offerings.
PhonePe has also demonstrated outstanding performance, boasting an annualized payment value of $1 trillion, primarily fueled by the popularity of the Unified Payments Interface (UPI) in India. According to the National Payments Corporation of India, PhonePe commands a substantial 46% share of the payments market and boasts an impressive user base of 400 million registered users. Walmart’s additional investment of $200 million at a pre-money valuation of $12 billion further solidifies PhonePe’s position as India’s most valuable payments startup.
Rainey envisions a future where both Flipkart and PhonePe achieve the coveted status of $100 billion businesses. Flipkart’s expansion into new product categories and PhonePe’s focus on leveraging UPI for seamless and instant payments serve as strong foundations for their ambitious journey.
While challenges are inevitable, Walmart’s investment and commitment, along with the thriving digital ecosystem in India, present a promising outlook. As Flipkart and PhonePe continue to innovate, capture market share, and cater to the evolving needs of Indian consumers, they are poised to reshape the e-commerce and digital payments landscape.
Backed by Walmart and fueled by their strong growth trajectories, Flipkart and PhonePe are poised to reach unprecedented valuations of $100 billion. Their ability to tap into India’s vast market potential and revolutionize the way people shop and make payments positions them as industry leaders, leaving a lasting impact on India’s digital economy.
