PhonePe Gears Up For IPO

Walmart-backed digital payments firm PhonePe has begun preparations for a potential listing on Indian stock exchanges. While the company has not specified a timeline for its initial public offering (IPO), the decision comes as it continues to witness good revenue growth and strengthens its path to profitability.

Walmart CEO Doug McMillon confirmed PhonePe’s IPO plans while discussing the company’s financial results for the December quarter. The fintech giant’s move toward a public listing follows its strategic relocation of headquarters from Singapore to India over two years ago. Since then, PhonePe has structured its business by carving out insurance, international payments, and insurance distribution as subsidiaries under its parent firm.

The IPO plans had previously faced uncertainty due to regulatory considerations. At last year’s Global Fintech Festival, PhonePe co-founder and CEO Sameer Nigam highlighted concerns over the National Payments Corporation of India’s (NPCI) proposed cap on market share for UPI payment applications.

He had stressed that such regulatory uncertainty could impact investor confidence and valuation. However, NPCI extended the deadline for imposing the cap by two years on 31 December, providing a clearer regulatory environment for the company.

PhonePe, which was acquired by e-commerce giant Flipkart in 2016 and later spun off in 2020, remains a key asset for Walmart, which holds a 71 per cent stake in the company. The fintech firm was last valued at USD 12 billion in May 2023 following investments from General Atlantic, Ribbit Capital and other investors.

As of January 2025, PhonePe boasts over 590 million registered users and a merchant base exceeding 40 million. The company processes more than 310 million daily transactions, with an annualised total payment value (TPV) of over Rs 145 lakh crore. Holding a dominant position in India’s Unified Payments Interface (UPI) ecosystem, PhonePe commands around 47 per cent of the market share.

Financially, the company closed FY24 with an operating revenue of Rs 5,064 crore and a net loss of Rs 1,996 crore. However, it reported a net profit of Rs 197 crore when excluding the impact of employee stock options.