In a major announcement at the Morgan Stanley Global Consumer and Retail Conference, John David Rainey, chief financial officer of Walmart, announced that PhonePe, the retail giant’s digital payments arm, will It has been revealed that the company has achieved an astonishing total payment value (TPV) of US$300 billion. . This puts PhonePe on par with some of the largest fintech companies in the highly competitive US market.
Rainey highlighted the importance of PhonePe’s performance by comparing PhonePe’s TPV to the gross payments and gross merchandise value (GMV) of Walmart’s business. He pointed out that PhonePe’s TPV has partnered with major US fintech companies, some of which have market capitalizations exceeding US$100 billion.
Walmart has been actively supporting Fonpe’s growth, injecting an additional $200 million in primary capital earlier this year, valuing the fintech platform at $12 billion. Rainey indicated that PhonePe may hold an initial public offering (IPO) between 2024 and 2025.
Both PhonePe and Flipkart, another major asset under the Walmart umbrella, are reportedly exploring avenues for IPOs or future listings. Mr. Rainey expressed his confidence in the ability to improve profitability going forward.
Flipkart Group CEO Kalyan Krishnamurthy has hinted that the company will consider an initial public offering in multiple regions, including India, with an estimated valuation in the range of $60 billion to $70 billion.
Despite a sharp rise in standalone net losses in Flipkart India’s B2B arm, PhonePe showed strong financial performance. For the financial year ended March 31, 2023, PhonePe reported a staggering 77% increase in revenue to Rs 2,914 crore from Rs 1,646 crore in FY22. This growth is due to an increase in remittances, mobile recharges and bill payments.
PhonePe’s expansion strategy includes diversifying its product range. The company recently introduced the Indus Appstore Developer Platform with the aim of supporting Android app developers and competing with technology giants like Apple and Google. Additionally, PhonePe also entered the merchant lending sector to further expand its services.
PhonePe has emerged as a strong player in the digital payments space, with its superior TPV and strategic initiatives positioning it as a key player in the evolving fintech landscape. The market is currently awaiting developments regarding PhonePe’s possible IPO and its continued growth trajectory.