Walmart-backed PhonePe begins preparing for IPO listing in India

“The company is commencing preparatory steps in connection with its potential IPO and plans to list on Indian exchanges. This marks a significant milestone for the company, which will celebrate its 10-year anniversary this year, and has grown to serve hundreds of millions of customers with innovative financial services and technology solutions,” PhonePe said in a statement.

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“PhonePe’s strong top-line and bottom-line growth across its diverse business portfolio, as detailed in its FY23-24 annual report, makes this a suitable time to prepare for a public listing,” the company said.

In December 2022, PhonePe redomiciled from Singapore to India for which it had to pay around ₹8,000 crore in taxes to the government.

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PhonePe currently commands a massive 48% market share in UPI. It is followed by Google Pay, which holds a 37% market share.

PhonePe founder Sameer Nigam had mentioned that the company would not go for an IPO until there was clarity on the market share cap. “The UPI market cap overhang is definitely a problem for us. I feel nervous going into the market if there’s a 30 percent market share cap lurking or booming and going and asking retail investors to put money against today’s market share of PhonePe,” he explained.

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In FY24, the Bengaluru-based company reported a 73 percent year-on-year increase in revenue at ₹5,064 crore on the back of cost efficiency and product diversification. PhonePe Group recorded adjusted Profit After Tax (PAT) of ₹197 crore, against a loss of ₹738 crore in the previous year.