PhonePe IPO: PhonePe, the most used platform for digital payments in the country, is preparing to launch an IPO. The size of the IPO can be between Rs 11000-13000 (approximately 1.2 – 1.5 billion dollars). With this, the valuation of the company can reach 10-12 billion dollars.
In the year 2023, the company had raised $100 million at a pre-money valuation of $12 billion under the leadership of its founder and CEO Sameer Nigam. Walmart currently has the largest stake in PhonePe. Its other investors include many big companies like Microsoft, General Atlantic, Tiger Global, TVS Capital, Qatar Investment Authority, Tencent, Ribbit Capital.
According to the company’s IPO filing, through this IPO, Walmart will reduce its stake in PhonePe by about 12 percent. Meanwhile, Tiger Global and Microsoft are planning to exit their investment completely. The three investors plan to sell about 50.7 million shares in the IPO. In view of this, it is being said that the IPO will be completely offer-for-sale (OFS). This means that new shares will not be issued by PhonePe.
The country’s second largest fintech IPO!
In the rapidly growing digital payments market in India, PhonePe is in direct competition with Google Pay and Paytm. The company had applied for its IPO in September and the listing is expected to be completed by April this year. However, increasing tension in the Middle East may have an impact on the timeline. If the listing goes ahead, PhonePe will become India’s second largest fintech IPO. Earlier in the year 2021, Paytm had brought an IPO of Rs 18300 crore.
UPI launched in 2016
At present, there are more than 650 million registered users of PhonePe. According to regulatory data, out of the total 21.7 billion transactions done through Unified Payments Interface (UPI) across the country in January, about 10 billion transactions were processed through it. The government launched UPI in 2016 to promote digital payments in the country and reduce the use of cash. Digital payments in India are still a low-margin business as companies are not allowed to charge fees for most transactions.
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