Migrating PhonePe to India 1B $ in useless tax
Like that stupid separation of PhonePe from Flipkart ~0.7B $
Now this 3.5B$ just to increase its stake when it was already a majority owner! What's going on?
Maybe,
Taking on Reliance retail and Amazon in India?
Tech infra for Walmart (random guess)
100% or ownership yields absolute power
They must really really believe or be desparate to win India. Because no matter how u see, this is not a slam duck winner business. There is competition already & reliance is simply biding it's time.
That's what I want to understand why so desperate for Flipkart š. Good thing, it's my company & we are not doing that bad but still puzzled
At the end of the day, it's the Indian market. That's the competition, and not really the competitors.
You need to read more on PhonePe IPO plans and mandates associated with going public in Indian markets. Calling something āuselessā without knowing the full details isnt a good idea.
No, pinning a billion down the drain on just the hope of IPO seems like a good idea? They hope IPO will succeed. PayTM bombed and is still down 50% even after more than year of its IPO.
A billion dollar flushed for tax not even as an investment but to just IPO an app which already has a govt backed competitor, one that's working smooth as butter, I see very less sense there.
With BHIM we don't really need PhonePe. It's pretty fast & reliable as well. Only thing that's keeping phonepe afloat is marketing & maybe benefits of non monopoly...!
Who lost that 50%? please please read about it!
With BHIM, PayTM shudnt have existed as well, they IPOed, how & why? ;)
Letās do a poll here to check how many people here are using BHIM Vs PayTM/PhonePe/XYZ.
India is too big a market to ignore. Amazon India has put in more money than 3.5
No dude. Sure, population wise but actual revenue is nothing in front of the rest. (We are a low income country na.. this is true for any company, we have volume but value is too small)
We are barely a drop in a bucket in front of Europe and America revenue .
For eg for Amazon-
I think American revenue is 160B$
UK, Germany already give ~ 20Billion each
We are barely 5Billion $
This makes me think other way around. Flipkart is the only face of Walmart against Amazon anywhere in the world. And since it's just pocket change for them (these 3-4B$ for a 600B$ fortune 1 company ), they don't mind putting that in to just jab Amazon..š
They're thinking 20 years down the line ! China for ex currently buys more luxury goods than the whole of Europe, they want to cement a place for themselves in the Indian market by that time !!
India is going to be the major consumer economy after US in 5-10 yrs. Reliance has already pumped a few 100 billions from Dhirubhaiās time to buy government goodwill aka clout.
Read about Amazon vs Reliance in future group battle. To win a country market you need government goodwill. This is the cost of that goodwill.
Contrary to your economic opinion, burning money , wasting money et al. Folks who have made billions in multiple countries , are not more foolish than their employee.
Think a little slower - if they are putting billions in recession, it's certainly not stupid.
You want to earn money in finance - yeah distribution wins you fees but lending wins you (interest) spread. And licenses are not giving to anyone, incorporated anywhere where your can't enforce your regulations... Even Navi struggled to get license.
If you own something completely, it makes a lot of compliances easier. But if you own a perceived bank completely, it will never be a bank as it will never get the license.
I hope you got the direction. Billions don't flow on stupidity :)
Walmart owns majority share in both PhonePe and Flipkart, PhonePe is a separate entity from Flipkart, but why is Flipkart itself entering into UPI ecosystem when it is dominant in e-commerce and PhonePe is dominant in UPI and payments.
...
Any news on who is getting it, what's like an average payout for eligible employees? As per the news article, approx 19000 employees are getting it. Anyone has insider info?
Got around 3CR
