Upcoming IPO: PhonePe to list on Indian exchanges, prepares to raise funds via public issue | Stock Market News
Walmart-backed PhonePe has begun preparations for a public listing on the Indian stock market, the company announced on Thursday.
The company’s valuation reached $12 billion in its most recent funding round conducted in 2023.
“The company is commencing preparatory steps in connection with its potential IPO and plans to list on Indian exchanges. This marks a significant milestone for the company, which will celebrate its 10-year anniversary this year, and has grown to serve hundreds of millions of customers with innovative financial services and technology solutions,” PhonePe said in a statement.
In December 2022, PhonePe shifted its domicile from Singapore to India, incurring a tax payment of approximately ₹8,000 crore to the government.
In its annual report, the company stated that the decision was driven by its strong belief that, as a homegrown and highly regulated Indian fintech firm, it should eventually go public on Indian stock exchanges.
“Our investors, led by Walmart, paid almost ₹8,000 crore (close to USD 1 billion) in taxes to the Indian government to accept PhonePe’s domicile shift to India,” the report said.
As of March 31, 2024, Walmart’s Luxembourg-based entity, FIT Holdings SARL, owned an 83.91 per cent stake in PhonePe. Meanwhile, General Atlantic Singapore held a 5.14% stake, and PhonePe’s Singapore subsidiary had a 6.7 per cent ownership in the company.
PhonePe financial overview
As of March 2024, the company had around 53 crore registered users and nearly 20 crore monthly active customers. It has deployed more than 50 lakh net payment devices.
PhonePe reported processing over 770 crore transactions per month, with a total transaction value of ₹10.5 lakh crore.
The PhonePe Group saw a 74 per cent rise in revenue, reaching ₹5,064 crore in FY24, up from ₹2,914 crore in the previous year.
Additionally, the group posted an adjusted Profit After Tax (PAT), excluding ESOP costs, of ₹197 crore for FY24, compared to a loss of ₹738 crore in FY23.
