PhonePe Prepares for Confidential IPO Filing, Targeting $10-15 Billion Valuation
PhonePe, the Walmart-backed fintech giant, is planning to file for a confidential IPO by the end of September, aiming for a valuation of $10-15 billion. The company has shown strong financial performance with a 73% growth in operating revenue to ₹5,064.00 crore and an adjusted PAT of ₹197.00 crore. PhonePe holds a 46% market share in the UPI ecosystem and processed 8.93 billion UPI transactions in July. The company has appointed leading financial institutions as advisors and is expected to raise approximately ₹1.50 billion through the offering.
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PhonePe, the Walmart-backed fintech giant, is making significant strides towards its initial public offering (IPO). The company is reportedly preparing to file for a confidential IPO by the end of September, with an ambitious valuation target of $10-15 billion.
Key Highlights
- PhonePe aims to file for a confidential IPO by September's end
- The company is targeting a valuation between $10-15 billion
- PhonePe converted to a public entity in April
- The fintech leader holds a 46% market share in the UPI ecosystem
Financial Performance
PhonePe's financial performance has shown remarkable improvement, positioning it strongly for the upcoming IPO:
- Operating revenue grew by 73% to ₹5,064.00 crore
- Adjusted Profit After Tax (PAT) reached ₹197.00 crore, a significant turnaround from a loss of ₹738.00 crore in the previous year
Market Position
PhonePe's dominant position in India's digital payments landscape is evident from its recent performance:
- Processed 8.93 billion UPI transactions in July
- Holds a 46% market share in the UPI ecosystem
IPO Details
The company has taken several strategic steps in preparation for its public offering:
- Relocated its domicile from Singapore to India in 2022
- Appointed leading financial institutions as advisors:
- Kotak Mahindra Capital
- JP Morgan
- Citi
- Morgan Stanley
PhonePe is expected to raise approximately ₹1.50 billion through the offering, marking a significant milestone in India's fintech sector.
Industry Implications
This move by PhonePe signifies the growing maturity of India's fintech ecosystem. As one of the leading players in the digital payments space, PhonePe's IPO could set a benchmark for other fintech companies considering going public.
The company's strong market position, impressive growth in operating revenue, and turnaround to profitability make it an attractive proposition for potential investors. The success of this IPO could potentially pave the way for more fintech listings in the Indian market.
As the IPO process unfolds, it will be interesting to see how the market responds to PhonePe's offering and what it means for the broader fintech landscape in India.
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