Winning Bizness Desk
Mumbai. PhonePe, India's leading digital payments platform, has officially transitioned from a private to a public company, changing its name from PhonePe Private Limited to PhonePe Limited. This change, approved during a general meeting on April 16, 2025, is a significant step in the company's preparation for an anticipated Initial Public Offering (IPO) on Indian stock exchanges. The company has submitted the necessary documentation to the Registrar of Companies (RoC) and is awaiting final approval from the Ministry of Corporate Affairs.
IPO Preparations and Financial Advisors
In its journey towards going public, PhonePe has appointed Kotak Mahindra Capital, JPMorgan, and Morgan Stanley as its financial advisors. The company is considering an IPO at a valuation of approximately $15 billion (₹1.28 lakh crore). This move follows the company's earlier decision in December 2022 to shift its headquarters from Singapore to India, aligning its operations more closely with its primary market.
Robust Financial Performance in FY24
For the fiscal year 2023-24, PhonePe reported a substantial 73% increase in revenue, reaching ₹5,064 crore. The company achieved a net profit of ₹197 crore, a significant turnaround from a loss of ₹738 crore in the previous fiscal year. This profitability excludes costs associated with employee stock options. The company's strong financial performance underscores its readiness for public listing.
Market Leadership in UPI Transactions
As of January 2025, PhonePe boasts over 590 million registered users and a network of over 40 million merchants. The platform processes more than 310 million transactions daily, with an annualized total payment value exceeding ₹145 lakh crore. Holding a 47.72% market share in India's Unified Payments Interface (UPI) ecosystem, PhonePe is a dominant player in the digital payments landscape.
Diversification and Expansion Initiatives
Beyond digital payments, PhonePe has diversified its offerings to include financial services such as insurance, lending, and wealth management. The company has also ventured into consumer technology with the launch of 'Pincode,' a hyperlocal e-commerce platform, and the 'Indus App Store,' India's first localized app store. These initiatives reflect PhonePe's commitment to broadening its service portfolio and enhancing user engagement.
About PhonePe
Founded in December 2015 by Sameer Nigam, Rahul Chari, and Burzin Engineer, PhonePe is a Bengaluru-based fintech company specializing in digital payments and financial services. The platform, launched in August 2016, leverages the Unified Payments Interface (UPI) to facilitate seamless transactions. Initially acquired by Flipkart in 2016, PhonePe became a separate entity in 2020, with Walmart retaining a majority stake. The company has since emerged as a leader in India's digital payments sector, continually expanding its services to meet the evolving needs of its user base.
