Walmart’s CFO predicts India to become its largest market this year
- ByStartupStory | March 9, 2023
During Walmart’s yearly institutional investors call, CFO John David Rainey stated that India is expected to exceed China and become Walmart’s largest international market this year.
Walmart, headquartered in Bentonville, is the majority owner of Flipkart, an e-commerce marketplace, and PhonePe, a payment app.
During the investors call on Tuesday evening, David Rainey expressed his belief that “India will become the biggest market in the world this year, exceeding China. He also highlighted the promising opportunity that India presents for the future”.
During the fiscal fourth quarter in February, Walmart International’s operating income experienced a significant decline of 65.3%, largely due to the separation of its Indian entities Flipkart and PhonePe.
In December, the online marketplace based in Bengaluru and the fintech startup declared a complete ownership separation of PhonePe.
Despite the ownership separation, Flipkart and PhonePe are still under the management of US-based Walmart, which holds the biggest share in both companies.
According to the quarterly earnings report released by the company, the operating income for the three-month period that ended on January 31 decreased to $300 million, as opposed to approximately $800 million during the same period in the previous year. The decline was primarily attributed to the expenses incurred for the separation of ownership of Flipkart and PhonePe.
During the fourth quarter, Walmart International‘s net sales increased by 2.1% to $27.6 billion. However, this growth was impacted by Flipkart’s choice to move its primary sales event, Big Billion Days, to the third quarter.
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