Walmart CEO Doug McMillon bullish on PhonePe's potential IPO in India
PhonePe, Walmart's Indian fintech arm, eyes IPO after a strong performance
13 May 2023
PhonePe, India's most valuable fintech startup, is likely to go public with an India listing, according to Walmart's CEO.
PhonePe dominates transactions on UPI, India's most popular online transaction processing system, with Google's GPay, processing more than 80% of all UPI transactions.
PhonePe plans to expand into wealth management, lending, and stockbroking and has a large user base, putting it in a strong position for future growth and success.
India's most valuable fintech start-up, PhonePe, is likely to go public with an India listing, according to Walmart’s President and CEO, Doug McMillon. PhonePe competes with Google Pay and Paytm and is currently valued at $12 billion. It dominates transactions on UPI, India's most popular online transaction processing system, with Google's GPay, processing more than 80% of all UPI transactions. PhonePe is a subsidiary of Walmart, which owns 77% of the company, and also owns Flipkart, another Indian e-commerce giant still headquartered in Singapore.
McMillon has said that PhonePe's performance has seen a significant upside, and the company's move to India indicates that it will most likely list in India. PhonePe declared last November that it had moved its headquarters from Singapore to India, likely preparing for an IPO. PhonePe's CEO, Sameer Nigam, has also stated that the company is a "made in India" company, with every office, data center, and employee located in India, and that there is no reason why it should not contribute to wealth creation in this market.
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PhonePe is also slowly becoming a distribution engine, cross-selling products such as insurance to its large base of 450 million registered users. The company plans to deploy funds from a recent funding round to build and scale wealth management, lending, stockbroking, ONDC-based shopping, and account aggregation businesses. The move is likely to further strengthen PhonePe's position as a leading fintech firm in India.
McMillon added that PhonePe's entry into the e-commerce business will not compete with sister company Flipkart, as both companies will focus on serving their own interests. Flipkart owns a 77% share in PhonePe, and Walmart's decision on Flipkart's listing has yet to be made.
In conclusion, PhonePe's move to India and potential IPO will likely further strengthen its position as India's most valuable fintech startup, with plans to expand into wealth management, lending, and stockbroking. Its dominance in UPI transactions and its large user base puts PhonePe in a strong position for future growth and success.