Flipkart, PhonePe still have room for investors, Walmart CEO says

The development comes after it was reported that Flipkart is currently preparing for an initial public offering (IPO) in the US to raise roughly US$10 billion. As part of the offering, Walmart was said to be looking to sell about 25% of Flipkart shares.

The planned IPO is expected to give Flipkart a US$40 billion valuation, double of what it was when Walmart acquired it in 2018.

“As we invested we did mention that our plan is to IPO, and that hasn’t changed,” Walmart’s chief exec, Doug McMillon, said while speaking at Indian newspaper Hindustan Times’ Leadership Summit. “Flipkart and PhonePe both need funding, they’re both growing so quickly.” The exec declined to give further details but said both Flipkart and PhonePe may diversify in various ways, including financial debuts.

Just last week, PhonePe raised US$700 million in a financing round led by Walmart, with the participation of Flipkart’s existing investors. This would serve to strengthen its offering and allow it to grow in a crowded fintech market. In India, it competes with Google Pay and Alibaba-backed Paytm, as well as Amazon Pay, among others.