Walmart Mulls IPOs for Flipkart and PhonePe in Next Two Years

Walmart is contemplating initial public offerings (IPOs) for its Indian subsidiaries Flipkart and PhonePe in the near future, according to statements made by Dan Bartlett, Walmart’s executive vice president for corporate affairs. The disclosure was made during the company’s shareholder meeting held near its Bentonville, Arkansas headquarters.

Bartlett revealed that Walmart is eyeing the possibility of launching IPOs for Flipkart and PhonePe within the next couple of years, with PhonePe potentially taking precedence despite Flipkart’s longer-established presence. PhonePe, a digital payments platform based in India, has rapidly emerged as one of the country’s leading payment platforms, leveraging its integration with India’s Unified Payments Interface (UPI) to facilitate seamless transactions across multiple banks without divulging account details.

The decision-making process for these potential IPOs involves intricate planning, particularly concerning PhonePe. Bartlett emphasized that various factors, including the choice of listing exchange, are under careful consideration. A year earlier, Walmart’s chief financial officer had projected substantial growth for Flipkart and PhonePe in India, envisioning them as potential $100 billion businesses. These operations are integral to Walmart’s broader strategy of doubling its gross merchandise volume in foreign markets to $200 billion within five years.

PhonePe’s remarkable growth trajectory is evident, with its consolidated revenue for the fiscal year 2023 witnessing a staggering 77% surge, driven by the burgeoning adoption of its platform in India’s expanding digital payments ecosystem. With over 490 million registered users and nearly 51% transaction value share on India’s UPI as of March 2023, PhonePe stands as a formidable force in India’s digital payments landscape, further solidifying its position as a potential IPO candidate.