Walmart President and CEO Doug McMillon, who is in India for an internal business trip, is delighted with how Flipkart is making progress towards impacting India’s next set of millions of users coming online with e-commerce. India’s e-commerce market is expected to grow to $150 billion in size by 2022 even as the number of internet users in India might grow by almost 2X from 450 million in 2017 to 850 million in five years, according to a report by Nasscom and PwC India in October last year.
“He is delighted with the progress the team is making to take e-commerce to next 200-300 million customers in India, and bring a great selection through right affordability construct to consumers in the country,” Rajneesh Kumar, Chief corporate affairs officer, Flipkart Group said in a company statement.
Flipkart, which was paid $16 billion last year by Walmart to acquire its 77 per cent stake, is engaged in a hyper-competitive battle with the world’s largest online retailer Amazon’s India unit.
Investment bank Barclays, in December last year, had said that both Amazon India and Flipkart are on a similar run rate of $11.2 billion in gross merchandise value for FY19. The statement came as clarification following its report in the preceding week that said Amazon is ahead of Flipkart in terms of GMV.
The competition in the e-commerce market is set to further intensify as Mukesh Ambani’s Reliance is also working towards the launch of its online venture that he announced at an event in Gujarat in January this year.
McMillon, who also interacted with Flipkart’s leadership team and employees, is “happy to see that along the journey, Flipkart is helping lakhs of MSMEs & sellers to access the market, build supply chain and create shared value,” Kumar said.
While Flipkart has over 1 lakh sellers, as per public data, Amazon, on the other hand, has “78,000 active sellers, 40,000 of which are doing considerable business with on an average 10 orders per day and 10,000 sellers are full-time sellers,” an AIOVA spokesperson told Financial Express Online.
McMillon also commended Flipkart’s leadership team including Group CEO Kalyan Krishnamurthy and PhoenPe CEO Sameer Nigam for their commitment to the mission of solving for India through tech and innovation.
The CEO was accompanied by Dan Bartlett, EVP Corporate Affairs, Walmart, and Dirk Van den Berghe, EVP & Regional CEO Asia & Canada. Visiting Walmart executives also met the leadership of Walmart India, Walmart Global Sourcing and Walmart Labs during the visit, Kumar said.