PhonePe seems to be the crown jewel for Walmart after its Flipkart acquisition, and the company is looking to monetise the payment app's user base. In its Q3 earnings, Walmart mentioned that there were over 55 million monthly active users on PhonePe, and said it was "quickly looking for ways to monetise the customer base, including an offering of financial services."
Walmart also said that PhonePe was acquiring more than three million new customers per month.
Walmart also said that the inclusion of Flipkart had helped it grow its international sales in Q3, which saw an increase of 4.8 percent in CC terms to $29.2 billion in Q3. However, third-quarter international operating income declined 16 percent year-over-year in constant currency due primarily to the expected dilution from Flipkart as well as the overall gross margin and FX pressure.
The Bentonville giant also mentioned that the ‘Big Billion Days’ sale was a success again this year, powered by shoppers and sellers from Tier 2 cities and beyond with nearly 75 percent growth in new customers versus last year.
Walmart is already looking to hive off PhonePe from Flipkart as per recent reports. It is noteworthy that PhonePe was valued at $7 billion by Morgan Stanley a few months ago.
PhonePe saw FY19 revenues grow 400 percent to Rs 245 crore, but losses also surged 2x to Rs 1907 crore.
"We’re excited about what’s happening at Flipkart and PhonePe," the Walmart management said during its Q3 earnings.
"Beyond just our current results, the Indian market represents a significant opportunity for growth, and our team of innovators brings local expertise to a market where understanding the flow of everyday life can help us provide products and services that remove friction from the lives of our customers," the management added.
First Published: Nov 14, 2019 9:15 PM IST
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