Walmart Shares Eye New Highs on $1.5B PhonePe IPO Plan
The blockbuster public offering for its Indian fintech holding could value PhonePe at up to $15 billion, spotlighting hidden value in the retail giant's portfolio.
Walmart Inc. (WMT) is poised to unlock significant value from its international portfolio as its Indian digital payments subsidiary, PhonePe, moves forward with a planned $1.5 billion initial public offering. The deal, which could value the fintech platform at as much as $15 billion, provides a major validation of Walmart’s strategic investments beyond its core retail operations and sent shares climbing toward their 52-week high in recent trading.
According to a report from Bloomberg, Walmart, which holds a majority stake in PhonePe, will offer shares alongside other investors, including Tiger Global. This IPO represents one of the most anticipated market debuts in the burgeoning Indian technology scene and marks a pivotal moment for Walmart, which acquired its stake through the landmark $16 billion acquisition of Indian e-commerce leader Flipkart in 2018.
At a valuation of $15 billion, PhonePe stands as a crown jewel within Walmart’s broader portfolio. The planned offering allows the Bentonville-based retailer to monetize a portion of its highly successful venture, crystallizing substantial gains and highlighting a tech-forward strategy that is often overshadowed by its vast brick-and-mortar empire.
Shares of Walmart recently traded at $119.36, up over 0.5% and approaching the stock's 52-week peak of $121.62. With a market capitalization now hovering around $946 billion, the market’s positive response to the PhonePe news suggests investors are rewarding Walmart’s ability to incubate and scale high-growth technology businesses in key international markets.
The strategic importance of this move cannot be overstated. PhonePe is a dominant force in India’s United Payments Interface (UPI), a real-time payment system that has seen explosive growth. By spinning out the fintech unit, Walmart not only raises capital but also establishes a public market valuation for an asset previously embedded within its consolidated financials. This could compel Wall Street to reconsider the company's overall valuation, applying a 'sum-of-the-parts' lens that better accounts for its high-growth digital and international holdings.
According to company filings, the Flipkart acquisition was a long-term bet on India’s consumer and digital economy. The PhonePe IPO is the first major realization of that bet, proving the value of Walmart's patient capital and strategic foresight. The move is likely to be cheered by analysts, who already hold a strong consensus 'Buy' rating on the stock, with 40 out of 42 analysts tracked by market data firms recommending buying or holding the stock.
For Walmart, the IPO serves multiple purposes. It provides a direct infusion of cash that can be reinvested into its core e-commerce and retail businesses or used to fund further strategic ventures. More importantly, it recasts the narrative around the company, positioning it as a savvy global investor with a keen eye for disruptive technology, not just a legacy retailer defending its turf.
Looking ahead, the successful public offering of PhonePe could set a precedent for how Walmart manages its diverse portfolio of assets. The company's ability to successfully navigate the Indian regulatory environment and bring a homegrown unicorn to the public markets will serve as a powerful case study for its global strategy. As investors increasingly favor companies with exposure to high-growth sectors, the PhonePe IPO gives Walmart a compelling new story to tell—one where the aisles of its supercenters lead directly to the frontiers of global fintech.