Walmart’s Flipkart and PhonePe IPOs Could Take Years, Says Executive

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Walmart, the retail giant, is considering potential initial public offerings (IPOs) for its subsidiaries Flipkart and PhonePe in the next couple of years, according to Dan Bartlett, the company’s executive vice president for corporate affairs. The IPO timeline was discussed during Walmart’s shareholder meeting near its headquarters in Arkansas. Bartlett emphasized that the process of preparing for an IPO for PhonePe, a leading digital payments platform in India, is complex and requires ample time. Despite Flipkart being a more established business, Walmart may prioritize a public listing for PhonePe. PhonePe’s significant presence in the Indian market is attributed to its association with the Unified Payments Interface (UPI), enabling seamless money transfers across multiple banks with enhanced security. The potential listing of PhonePe on the Indian exchange is under evaluation for the future IPO.

Previously, Walmart’s CFO projected that both Flipkart and PhonePe could evolve into $100 billion enterprises in India, supported by robust growth. PhonePe reported a remarkable 77% increase in consolidated revenue for financial year 2023, fueled by the escalating demand for digital transactions in India’s thriving payments landscape. With over 490 million registered users, PhonePe commands a majority share of UPI transactions in India, highlighting its widespread adoption and user engagement.

The fluctuating valuations of Flipkart have been a subject of analysis, revealing a sizeable decline in its worth over the past years. Recent reports indicate a reduction in Flipkart’s valuation by approximately Rs 41,000 crore since January 2022, bringing the valuation down to $35 billion by January 2024. Despite these fluctuations, Walmart remains optimistic about Flipkart’s market positioning and potential for growth in the dynamic Indian e-commerce ecosystem. As Walmart navigates the intricate process of preparing for IPOs for Flipkart and PhonePe, stakeholders eagerly await the strategic developments and future prospects of these prominent entities in India’s business landscape.