Walmart, the world's largest retailer, highlighted that its digital payments entity, PhonePe, has achieved a Total Payment Value (TPV) of $1.3 trillion. This achievement places PhonePe on par with some of the major fintech players in the United States in terms of scale, indicating significant market potential akin to US-based fintech giants whose market capitalizations often exceed $100 billion. John David Rainey, Walmart's Chief Financial Officer, mentioned at the Morgan Stanley Global Consumer and Retail Conference that PhonePe holds the potential to emerge as a leading global payment company, especially outside China, in the near future.

Walmart acquired PhonePe as part of its 2018 purchase of Flipkart. The introduction of the Unified Payments Interface (UPI) in 2016 transformed India's payment landscape, simplifying transactions and contributing significantly to the country's digital evolution. PhonePe, which commands a 50% share of India's payment market, was separated from Flipkart a year ago. In 2023, it secured $850 million in funding from investors like General Atlantic, Ribbit Capital, and Tiger Global.

PhonePe witnessed a 77% revenue surge to Rs2,914 crore in FY23, while Flipkart's revenue grew 9% to Rs56,013 crore, though it faced a net loss of Rs4834 crore. Walmart, contemplating Flipkart's public offering for over two years, emphasized the need to enhance the Indian online retailer's financial performance. John David Rainey, Walmart's CFO, hinted at potential IPOs for Flipkart and PhonePe, expecting improved profitability as they progress towards this goal. He highlighted their capability to be highly attractive in terms of market capitalization.

Walmart increased its stake in Flipkart to 80.5% by investing $3.5 billion two quarters ago. It also injected an additional $200 million into PhonePe, valuing it at $12 billion. A report by Bernstein Research suggested that India's e-commerce market might double to $133 billion by 2025, with Flipkart, Amazon, and Reliance Industries likely to control over 90% of it. PhonePe holds a dominant share in UPI transactions, accounting for 47.2% in volume and 50% in value, as per the National Payments Corporation of India (NPCI). In March of the current year, PhonePe reached a $1 trillion annualized total payment value, aided by its increasing UPI market share. The company emphasized investments in new sectors such as insurance and wealth management.