PhonePe IPO: Walmart's digital payments provider may file draft red herring prospectus soon; eyes $1.5 billion

PhonePe, the largest digital payments provider in India and majority-owned by Walmart Inc., is preparing to submit initial documentation for a public offering that could raise up to $1.5 billion, according to sources familiar with the matter.

The sources told Bloomberg that the fintech company aims to file a draft red herring prospectus by August, with the IPO potentially valuing the company at around $15 billion. They also noted that arrangements are currently in progress and that details may change.

Founded in 2015, PhonePe reports having over 610 million registered users and processes transactions worth 340 million rupees daily.

In 2023, the company secured $100 million in funding from Ribbit Capital, Tiger Global Management, and TVS Capital Funds, achieving a valuation of $12 billion at that time, as per their official announcement. The financial services firm has engaged the services of Kotak Mahindra Capital Co., JPMorgan Chase & Co., Citigroup Inc., and Morgan Stanley as lead managers to coordinate the proposed offering.​