PhonePe IPO Plans: Targeting $1.5 Billion with $15 Billion Valuation

PhonePe, a fintech decacorn, is reportedly gearing up to submit preliminary documents for an initial public offering (IPO) aimed at raising up to $1.5 billion. As per a Bloomberg report, the company is seeking a valuation of $15 billion and aims to file the draft papers (DRHP) by August 2025.

Under the leadership of Sameer Nigam, PhonePe secured $100 million in December 2023 as part of a broader $1 billion funding round, achieving a pre-money valuation of $12 billion. Walmart continues to be the majority shareholder, while other prominent investors include Microsoft, General Atlantic, Tiger Global, Ribbit Capital, TVS Capital, Tencent, and the Qatar Investment Authority.

PhonePe’s Market Position and Performance

PhonePe stands as the leading player in the UPI ecosystem, handling over 310 million UPI transactions daily and commanding more than 46.7% of the market share by transaction volume. The company reported revenue exceeding Rs 5,000 crore in FY24 and successfully reduced losses by 28.6%, amounting to Rs 1,996 crore during the same period.

Relocation and Expansion

In October 2022, PhonePe moved its domicile from Singapore to India, aligning with its aim to become independent from Flipkart. Beyond its core payments business, which generates the majority of its revenue, PhonePe has diversified into areas like credit, insurance, and stockbroking.