As quoted by the Wallmart CFO, John David Rainey, the market share of Wallmart as the majority stake holder in Indian retail company Flipkart and PhonePe, a digital payment platform, is on a significant rise, so much so that in the year 2023 it looks poised to overtake the Chinese market share of Wallmart. Flipkart’s contribution in the company’s growth is very positive and is consistently expanding. The Wallmart executive also mentioned that the e-commerce market of India is seriously benefitting from the decisions being made in the infrastructure sector by the government. These growth oriented decisions made in last few years have put India on a strong economic growth platform.
One of the highlights of Wallmart in the quarter ending January (Q4) was that its international business saw operating income drop 72% in constant currency terms to 300 $1,000,000 primarily due to the reorganization of Flipkart and phone pay as separate businesses. At the time of shifting the domicile to India from
This was the time when PhonePe was separated as an independent identity from Flipkart. Wallmart’s International Chief also mentioned that when the US retail major invested in Flipkart, PhonePe was hardly a few months old business and their total payment value(TPV) was just a few million dollars, but as the time progressed it saw significant rise in that. As of December, 2022 quarter, the TPV crossed $950 billion with the number of monthly transactions reaching 4 billion.
Singapore, the shareholders of PhonePe had to shell out nearly $1 billion in taxes.
Walmart’s CFO, John David Rainey, has spoken in the past about the company’s commitment to the Indian market. In 2019, he stated that Walmart was “optimistic about India” and that the company saw “significant growth potential” in the country.
After nearly four years of operations, his optimism has translated into reality and the Indian markets contribution is all set to top the Chinese market share of the retail market giant and becoming the largest market outside US.