Walmart Considering IPOs for Flipkart and PhonePe

48

During Walmart’s recent shareholder meeting near its Bentonville, Arkansas, headquarters, executive vice president for corporate affairs, Dan Bartlett, hinted at potential initial public offerings (IPOs) for Flipkart and PhonePe, two of the retail giant’s prominent assets based in India. Bartlett indicated that these IPOs could materialize over the next couple of years, shedding light on Walmart’s strategic plans for its Indian operations.

PhonePe, a leading digital payments platform in India, may see an IPO before Flipkart, despite Flipkart’s more established presence in the market. Bartlett highlighted PhonePe’s significant position in India’s digital payments landscape, particularly its integration with the Unified Payments Interface (UPI), which enables seamless money transfers across multiple banks.

Acknowledging the complexity involved in preparing for an IPO, Bartlett emphasized the need for thorough processes to be implemented before PhonePe’s potential public listing. He also mentioned that considerations regarding the listing venue, whether on the Indian exchange or elsewhere, are being deliberated.

Walmart’s optimistic outlook for Flipkart and PhonePe was underscored by its chief financial officer’s remarks a year ago, suggesting that both businesses could potentially reach $100 billion in valuation, fueled by robust growth prospects. These entities are pivotal to Walmart’s aspirations of doubling its gross merchandise volume in foreign markets to $200 billion within five years.

PhonePe’s strong performance in the Indian digital payments market was evident from its impressive revenue growth of 77% in the financial year 2023. With over 490 million registered users and a dominant share of transactions on India’s UPI, PhonePe remains a key player in India’s burgeoning digital economy.

As Walmart continues to navigate the dynamic landscape of India’s retail and digital payments sectors, the prospect of IPOs for Flipkart and PhonePe represents a significant strategic move that could unlock substantial value for both Walmart and potential investors.