(CTN News) – Walmart has spent $3.5 billion this year to acquire shares from certain Flipkart stakeholders and resolve liabilities with some PhonePejust how aggressively it is betting on India at a time when its chief global rival Amazon is reducing its investments there.
Walmart disclosed in an SEC filing Friday for the first timebillion in spending was made during the first six months of 2023. owns about 80% of Flipkart, the largest e-commerce company in the world.
Tiger Global, Accel and Flipkart co-founder Binny Bansal are some of the investors who have sold their stakes in Flipkart during the pastaccording to an earlier filing by Flipkart.
In its announcement earlier today, Tiger Global reported that it made an overall gain of $3.5 billion after investing $1.2 billion inwas its biggest win in the South Asian market to date.
Among the many companies, Walmart, which owns a major stake in PhonePe and has spent over $20 billion on the two businesses, is ramping up their investments in Indian e-commerce and paymentat a time when many other companies, including Amazon, have cut back their spending these areas.
The figure above can be put into perspective by saying that Amazon plans to invest less than $2.5 billionits e-commerce platform in India in the next seven years.
In the past decade, Amazon has invested over $11 billion into its e-commerce group and Amazon Web Services (AWS) in India, which it plans to double to $15 billion by 2030. As part of this $15 billion, Amazon has allocated $12.7 billion for its cloud business out of this total amount.
Last month, Walmart said in an earnings call that PhonePe and Flipkart continue to show impressive growth as the years
John David Rainey, Walmart’s CFO,delivered strong growth in GMV and net sales as Walmart’s core business well.
“The team continues to work on expanding the ecosystem of products and services like advertising, travel, and healthcare, as well as delivering continuous improvements in the marginconfident that this company has long-term value to offer.”
There is no doubt that India has emerged as a key battleground in the race to find the next billion customers for global businesses.
It has been said that India will become the new China and the fastest-growing major economy in the coming decade and beyond, according to a recent fund note released by Baron Capital.
the most appealing in our universe when it comes to long-term investments. Reforms in the economy, digitization, formalization, and the rise in credit penetration favor the most sophisticated, best managed public corporations in the world.”
PhonePe, which has separated from Flipkart.