Digital payments giant PhonePe has taken a significant step towards going public by submitting draft papers to the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO) worth ₹12,000 crore. The company has opted for the confidential route for this filing.

IPO Structure and Potential Sellers

The entire offering is structured as an offer for sale by existing investors, potentially allowing them to offload up to 10% of their stake in the company. Key shareholders who might participate in this sale include:

• Walmart (majority shareholder)
• Tiger Global
• Microsoft

Other notable investors in PhonePe include General Atlantic, Ribbit Capital, TVS Capital, Tencent, and Qatar Investment Authority.

Previous Valuation Targets

Prior to this filing, PhonePe had set its sights on raising $1.5 billion, targeting a valuation of up to $15 billion. The current IPO plans suggest a recalibration of these expectations, focusing on providing an exit opportunity for existing investors rather than raising fresh capital.

Financial Performance

PhonePe's financial results showcase strong growth and improving profitability:

The substantial increase in operating revenue, coupled with a narrowing net loss, indicates PhonePe's growing market presence and improving operational efficiency.

Business Diversification

While PhonePe has expanded its services to include:

• Credit distribution
• Insurance
• Stockbroking

It's worth noting that payments remain the primary source of revenue for the company. This diversification strategy aims to create additional revenue streams and enhance the company's overall financial ecosystem.

The move to go public marks a significant milestone for PhonePe in India's burgeoning fintech landscape. As the IPO process unfolds, investors and industry observers will be keenly watching how the market values this digital payments leader.

PhonePe, the digital payments platform, has brought back its short-term firecracker insurance plan just in time for the festive season, offering users an affordable way to stay protected during celebrations.

Key Features of the Insurance Plan

• Cost: The policy is priced at ₹11.00, inclusive of GST.
• Coverage: Provides protection up to ₹25,000.00.
• Duration: The plan offers coverage for 11 days.
• Beneficiaries: Covers the policyholder, spouse, and up to two children under a single policy.

What's Covered?

The firecracker insurance plan includes coverage for:

1. Hospitalization expenses for stays exceeding 24 hours
2. Day-care treatment for less than 24 hours
3. Accidental death due to firecracker-related incidents

Policy Activation

• Policies purchased before October 12 will have coverage starting from that day.
• For purchases made after October 12, the 11-day coverage period begins from the date of purchase.

How to Purchase

Interested users can easily acquire the policy through the PhonePe app by following these steps:

1. Navigate to the Insurance section in the app
2. Review the plan details and insurer information
3. Enter policyholder details
4. Complete the payment

This reintroduction of the firecracker insurance plan by PhonePe aims to provide a safety net for families during the festive season. With its low cost and comprehensive coverage, the plan offers peace of mind for those participating in firecracker-related festivities.

As the festive season approaches, this initiative by PhonePe demonstrates the company's commitment to user safety and financial protection, making celebrations both joyous and secure.