In a major announcement at the Morgan Stanley Global Consumer and Retail Conference, Walmart’s Chief Financial Officer, John David Rainey, revealed that PhonePe, the digital payments arm of the retail giant, has achieved a remarkable Total Payment Volume (TPV) of USD 1.3 trillion. This places PhonePe on par with some of the leading fintech firms in the highly competitive US market.
Rainey compared PhonePe’s TPV to the Total Payment Volume versus Gross Merchandise Value (GMV) in Walmart’s business, underlining the significance of PhonePe’s achievement. He noted that PhonePe’s TPV aligns with major fintech players in the US, some of which boast market caps exceeding USD 100 billion.
Walmart has been actively supporting PhonePe’s growth, injecting an additional USD 200 million in primary capital earlier this year, valuing the fintech platform at USD 12 billion. Rainey hinted at PhonePe’s potential initial public offering (IPO) between 2024 and 2025.
Both PhonePe and Flipkart, another key asset under Walmart, are reportedly exploring paths to an IPO or going public in the future. Rainey expressed confidence in their ability to enhance profitability moving forward.
Flipkart Group CEO Kalyan Krishnamurthy hinted at the exploration of multiple geographies, including India, for its public offering, with an estimated valuation ranging between USD 60 billion to USD 70 billion.
Despite Flipkart India’s B2B segment witnessing a surge in standalone net losses, PhonePe showcased robust financial performance. In the fiscal year ending March 31, 2023, PhonePe reported a staggering 77% surge in revenue, reaching Rs 2,914 crore, up from Rs 1,646 crore in FY22. This growth was attributed to increased activity in money transfers, mobile recharges, and bill payments.
PhonePe’s expansion strategy includes diversifying its product range. It recently introduced the Indus Appstore Developer Platform, aiming to support Android app developers and compete with tech giants like Apple and Google. Additionally, PhonePe ventured into the merchant lending sector, further expanding its services.
As PhonePe emerges as a formidable player in the digital payments space, its impressive TPV and strategic initiatives position it as a key player in the evolving fintech landscape. The market now eagerly awaits developments regarding PhonePe’s potential IPO and its continued growth trajectory.
