PhonePe Preparing for IPO with valuation of $8 – $10 bn

June 19, 2022

PhonePe, part of the Walmart Inc- controlled Flipkart group, is considering to raise finances through an original public immolation for expanding its fiscal services portfolio and heightening its core United Payments Interface(UPI)- grounded payments operations, investment banking sources said on Wednesday. The digital payment company is seeking a valuation of USD 8- 10 billion, they added.

According to the sources, the company will soon engage with bankers and legal advisers to take forward the IPO ( original Public Offering) process. Also, the company has initiated plans to move its listed holding reality from Singapore to India, italicizing its’ made in India’ credentials. PhonePe’s board has formerly ratified the offer to move the holding company to India.

The company will list on Indian stock exchanges as opposed to numerous startups that prefer to incorporate overseas, primarily Singapore or the US, chasing fairly friendlier duty laws and business regulations there.

PhonePe was innovated byex-Flipkart directors Sameer Nigam, Rahul Chari and Burzin mastermind, and was acquired by Flipkart in 2016. In 2018 Flipkart was acquired by Walmart, and PhonePe was part of the sale as well. The company plans to go public once its core businesses turn profitable, which it hopes to achieve by 2023, investment banking sources said. In addition, PhonePe plans to raise its pool strength to,200 by the end of December to ride on the growing UPI- grounded deals in India.

The company has,600 workers and,800 open job positions across metropolises similar as Bengaluru, Pune, Mumbai and Delhi.

PhonePe had last raised USD 700 million in 2020 led by its promoters Flipkart and Walmart at a valuation of USD5.5 billion. The digital payment company has raised a aggregate of USD1.7 billion in backing over 13 rounds that includes Tiger Global Management and Tencent as investors.

The company has applied for a collective fund license and a Non-Banking Financial Company (NBFC) licence and has acquired three companies- Wealth Desk, Open Q and Gig India. PhonePe is the leader in the UPI space, enjoying a 47 per cent request share in yearly deals.

At present, PhonePe holds a collective fund distribution licence, and will be adding stocks and exchange traded finances to its growing list of wealth operation products.

It blazoned that it’ll launch UPI SIP (Methodical Investment Plan) for investment in gold. druggies will be suitable to invest in high chastity 24K gold of a specified quantum every month. The gold can be accumulated in their ensured bank- grade lockers, maintained by MMTC- PAMP and Safe Gold.

PhonePe was also in the process of integrating its processes with the Open Network for Digital Commerce (ONDC) airman, India’s indigenously created open sourcee-commerce network, with real- time deals in the retail and food delivery space starting in some metropolises.

Under ONDC, real- time deals in the retail and food delivery space have started in some metropolises similar as Shillong and Delhi. presently, ONDC is fastening more on retailers and caffs.


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