Retail giant Walmart announced that its digital payments arm, PhonePe, has achieved a significant milestone with a Total Payment Volume (TPV) of USD 1.3 trillion, putting it on par with some of the major fintech firms in the US market.
During the Morgan Stanley Global Consumer and Retail Conference, John David Rainey, Walmart's chief financial officer, highlighted PhonePe's remarkable performance. He compared their TPV to the Total Payment Volume versus Gross Merchandise Value (GMV) in Walmart's business, emphasising PhonePe's USD 1.3 trillion TPV, which aligns with leading fintech players in the US, some of which boast market caps exceeding USD 100 billion.
Reports suggest that PhonePe is considering an IPO between 2024 and 2025. Earlier this year, Walmart infused an additional USD 200 million in primary capital into the fintech platform, valuing it at USD 12 billion before the money was injected.
While Walmart also owns Flipkart, a prominent e-commerce entity, Rainey indicated that both PhonePe and Flipkart are contemplating potential paths to an IPO or going public in the future. He expressed confidence in their ability to enhance profitability as they move forward.
Earlier announcements from Flipkart Group CEO Kalyan Krishnamurthy hinted at exploring multiple geographies, including India, for its public offering, expected to range between USD 60 billion to USD 70 billion.
On the financial front, Flipkart India's B2B segment witnessed a surge in standalone net losses, soaring over 42 per cent to Rs 4,845.7 crore in FY23 from Rs 3,404.3 crore in the previous fiscal year. Despite this, the B2B arm experienced a modest 9.7 per cent increase in operating revenue to Rs 55,923.9 crore.
Meanwhile, PhonePe disclosed a revenue of Rs 2,914 crore in the fiscal year ending 31 March 2023, marking a remarkable 77 per cent surge from Rs 1,646 crore in FY22. The growth in revenue was attributed to increased activity in money transfers, mobile recharges and bill payments.
PhonePe has been diversifying its product range with numerous launches and initiatives. It introduced the Indus Appstore Developer Platform to support Android app developers, aiming to rival tech giants like Apple and Google. Additionally, PhonePe ventured into the merchant lending sector, expanding its services further.