Walmart-owned PhonePe, which was hived off as a separate entity from Flipkart, is working on an initial public offering (IPO) by 2023 at a valuation of $7-10 billion.
PhonePe is planning a separate listing in the US or India, depending on the market conditions, according to a Business Standard report. Flipkart, too, is planning a US listing by 2022, the report added.
US retail giant Walmart acquired a 77 percent stake in Bengaluru-based Flipkart in May 2018.
"The Walmart leadership has told PhonePe and Flipkart about building the 'path to profitability' and PhonePe has set a target to be profitable by 2022," a source told the publication.
Moneycontrol could not independently verify the story.
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"All employees at PhonePe have started working towards that goal. The company is partnering and providing value-added services to kiranas and on-boarding merchants," a source told Business Standard.
The financial technology company has launched six insurance and mutual fund products over the past four months.
PhonePe, along with Google Pay and Paytm, accounts for a significant portion of transactions made through the Unified Payments Interface (UPI).