Walmart-owned Flipkart and digital payments platform PhonePe could be $100 billion businesses in India, according to Walmart Chief Financial Officer John Rainey.
Rainey made the comments at an investor conference on Wednesday, June 14. He said that Flipkart and PhonePe are “two of the most exciting growth businesses in the world” and that Walmart is “committed to investing in them for the long term.”
Flipkart is India’s largest online retailer. It was founded in 2007 and acquired by Walmart in 2018 for $16 billion. Flipkart has over 300 million registered users and offers a wide range of products, including electronics, fashion, home goods, and groceries.
PhonePe is India’s leading digital payments platform. It was founded in 2015 and acquired by Walmart in 2018 for $1 billion. PhonePe has over 300 million users and offers a variety of payment services, including mobile wallets, online payments, and peer-to-peer payments.
Rainey said that Flipkart and PhonePe are both benefiting from the strong growth of the Indian e-commerce and digital payments markets. He said that the two businesses are “well-positioned to capture significant market share” and that they have the potential to become “truly iconic Indian brands.”
The Indian e-commerce market is expected to grow from $38 billion in 2022 to $200 billion by 2026. The Indian digital payments market is expected to grow from $1 trillion in 2022 to $10 trillion by 2026.
Walmart is investing heavily in Flipkart and PhonePe to help them capture a larger share of these growing markets. Walmart has invested over $20 billion in Flipkart since 2018. It has also invested over $1 billion in PhonePe.
Rainey said that Walmart is “confident” that Flipkart and PhonePe will be “successful businesses for many years to come.” He said that the two businesses have the potential to “create significant value” for Walmart shareholders.
Here are some reasons why Flipkart and PhonePe could become $100 billion businesses:
- The Indian e-commerce and digital payments markets are growing rapidly.
- Flipkart and PhonePe are both market leaders in their respective industries.
- Walmart is a strong partner that can provide Flipkart and PhonePe with the resources and expertise they need to succeed.
Here are some challenges that Flipkart and PhonePe will need to overcome:
- Competition from other e-commerce and digital payments companies.
- Regulatory hurdles.
- Slow internet penetration in rural areas.
Despite these challenges, Flipkart and PhonePe have the potential to become $100 billion businesses. They are both well-positioned to capture a larger share of the growing Indian e-commerce and digital payments markets. Walmart’s investment in the two businesses is a vote of confidence in their future success.
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