Walmart, the world's biggest retailer, said its digital payments firm PhonePe has a total payment value (TPV) of $1.3 trillion, equalling some of the largest fintech players in its home market of the US, indicating the Indian firm’s market cap potential when it lists.
"PhonePe is doing roughly $1.3 trillion in total payment value. And that is at the same scale as the largest fintech players in the United States, to put that in context, that have market caps that are in some cases, north of $100 billion," John David Rainey, chief financial officer at Walmart said during Morgan Stanley Global Consumer and Retail Conference. "PhonePe could be one of the leading payment companies in the world, certainly outside of China in the near future."
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Also read | PhonePe is set to launch consumer lending by January 2024
Walmart had taken over PhonePe as part of its 2018 acquisition of ecommerce firm Flipkart. Unified Payments Interface (UPI), introduced in 2016, has been a game changer in the payment ecosystem in India, easing payments and transfers, and playing a key role in digital adoption in the country.
PhonePe, which controls half of India’s payments market, was hived off from Flipkart a year ago. In 2023 itself, it raised $850 million from investors including private equity firms General Atlantic, Ribbit Capital and Tiger Global.
In FY23, PhonePe posted a 77% rise in revenue at Rs2,914 crore while Flipkart's revenue grew 9% to Rs56,013 crore on a net loss of Rs4834 crore.
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Walmart, which has been weighing a public issue for Flipkart for more than two years, said it has still to finalise a timeframe, and would instead focus on improving the Indian online retailer’s financials.
"Each of them (Flipkart and PhonePe) is at some point likely to launch an IPO. And as they inch towards that, you will likely see improvements in profitability as well. And so, part of the improvement in our P&L is the reduction of losses and their P&L as we consolidate," Rainey said. "But these are two companies that by themselves could be very, very attractive from a market capitalization perspective."
Walmart spent $3.5 billion to boost its stake in Flipkart to 80.5% two quarters ago. It also pumped in an additional $200 million in PhonePe at a pre-money valuation of $12 billion.
A report by Bernstein Research said India’s e-commerce market could double in size to $133 billion by 2025, with three leading players - Flipkart, Amazon and Reliance Industries - controlling more than 90% of the market, up from 70% now.
PhonePe has a leading 47.2% share of UPI transactions in terms of volume and 50% in value, according to the National Payments Corporation of India (NPCI). In March this year, PhonePe hit $1 trillion in annualised total payment value run rate helped by increasing share in UPI. The company said it is also making significant investments in new businesses such as insurance and wealth management.
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Walmart, the world's biggest retailer, said its digital payments firm PhonePe has a total payment value (TPV) of $1.3 trillion, equalling some of the largest fintech players in its home market of the US, indicating the Indian firm's market cap potential when it lists.
Is PhonePe backed by Walmart? ›
Walmart Inc. -owned fintech PhonePe Pvt. launched a mobile application store for consumers in India, the world's biggest market for downloads. The Android-based store is called Indus Appstore, PhonePe said in a statement Wednesday, as it pits the product against Google's Play Store.
What is the value of PhonePe? ›
Bengaluru, India and New York, NY, January 19th, 2023: PhonePe, one of India's largest fintech platforms, today announced it has raised $350 million in funding from General Atlantic, a leading global growth equity firm, at a pre-money valuation of $12 billion.
Is PhonePe fintech? ›
In February, PhonePe became the first fintech platform to enable cross-border UPI payments. In March, PhonePe hit an annualized TPV (total payment value) run-rate of USD $1Trillion (Rs. 84 Lac Crs). In April 2023, PhonePe launched a shopping app called Pincode.
Is PhonePe public? ›
The valuation of private companies such as PhonePe is not readily available because they are not listed on public exchanges.
Who owns PhonePe? ›
The PhonePe Group was acquired by the Flipkart Group in 2016 and today is India's largest digital payments platform. The company builds products and offerings tailored to the Indian market, and with over 400 million registered users, more than one in four Indians are now using PhonePe.
Which bank supports PhonePe? ›
PhonePe's partner banks are: Yes Bank (@ybl) ICICI Bank (@ibl) Axis Bank (@axl)
Is PhonePe a unicorn? ›
Just five months after laying off 12% of its staff, the company has now cut an additional 35% of its workforce, or 115 employees, as it looks to restructure and reduce costs. In today's newsletter: PhonePe is now India's most-valued fintech unicorn. What drove GoMechanic to the garage.
How much profit does PhonePe make? ›
However, excluding expenses on employee stock option plans, it posted an operating profit of Rs 159 crore, compared with an operating loss of Rs 455 crore in FY22.
Why is PhonePe more popular? ›
Success of PhonePe
PhonePe provided consumers with a seamless and secure option to make transactions directly from their bank accounts by connecting with UPI. As a result, the app instantly gained popularity due to its simple layout, quick processing speeds, and useful features.
Walmart-owned fintech unicorn PhonePe on October 18 reported a consolidated revenue of Rs 2,914 crore in the financial year ending March 2023, up nearly 77 percent from Rs 1,646 crore in FY22, mainly due to its expansion within the digital payments space.
Can we use PhonePe in the US? ›
Can PhonePe be used internationally? Yes! When activated for international use, you can use PhonePe to make QR code payments from your Indian bank account to select merchants abroad. Here's a guide to using PhonePe to make international payments when traveling abroad.
Who are the investors in PhonePe? ›
Who are the current shareholders of PhonePe?
| Shareholders Name | Post Round Holding % | Net worth |
|---|
| Parent Entity | 71.20% | 74,200Cr |
| Enterprise | 6.52% | 6,780Cr |
| Angel | 1.02% | 1,070Cr |
| ESOP Pool | 15.15% | 15,800Cr |
2 more rowsPhonePe raises $100Mn in additional funding at a $12 billion valuation.
What is the value of PhonePe market? ›
Walmart, the world's biggest retailer, said its digital payments firm PhonePe has a total payment value (TPV) of $1.3 trillion, equalling some of the largest fintech players in its home market of the US, indicating the Indian firm's market cap potential when it lists.
Who is PhonePe partnered with? ›
PhonePe has partnered with a carefully curated selection of top lenders such as Tata Capital, L&T Finance, Hero FinCorp, Muthoot Fincorp, DMI Housing Finance, Home First Finance, rupyy, Volt Money, Gradright, with more lenders to be added in the coming weeks.
Which company invested in PhonePe? ›
New Businesses
In 2023, PhonePe raised around $650 million from a clutch of marquee investors, including Walmart, Tiger Global, Ribbit Capital and General Atlantic.
What payment system does Walmart use? ›
Walmart Pay works with any valid major credit card that's saved to a Walmart account, & with one or more Walmart gift cards. These cards are listed as payment methods within the app, & you can choose which card or cards get used at checkout. Keep an eye out for more ways to use Walmart Pay in the future.
