Leading fintech company PhonePe is soon to launch its IPO. The company may file confidentially by the end of September. Approximately 10% stake may be sold in the proposed IPO, with a size of ₹10,000-13,000 crore and a valuation that could reach $10-12 billion. PhonePe leads in UPI payments with a 45% market share.
PhonePe IPO: Walmart-backed fintech company PhonePe is preparing to launch its IPO. According to sources, the company may file confidentially by the end of September, and approximately 10% stake may be sold in the proposed IPO. This IPO could be in the range of ₹10,000-13,000 crore, and the company's valuation may reach $10-12 billion. PhonePe is at the forefront of QR-based payments with a 45% market share in UPI payments.
PhonePe's Market Dominance
PhonePe leads in India with over a 45 percent market share in UPI payments. The company is also a leader in QR-based payments. Additionally, through its app, PhonePe offers financial services like insurance and loans, beyond digital payments. This signifies that PhonePe is not just limited to being a payment gateway but has evolved into a comprehensive financial services platform.
Experts believe that PhonePe's IPO could prove to be a milestone for the Indian fintech sector. The company aims to list on the stock market by early 2026. This will provide investors with a new opportunity to invest in the digital payments and fintech sectors.
Walmart and Investor Stakes
PhonePe was initially launched in December 2015 as a subsidiary of Flipkart. However, following Walmart's investment in Flipkart, PhonePe's ownership changed. In December 2020, Walmart separated PhonePe from Flipkart and made it its subsidiary. Currently, Walmart holds over a 70 percent stake in PhonePe.
Minority investors may get an opportunity to sell their stakes in the IPO. These investors include Tiger Global and General Atlantic, who hold less than a 9 percent stake in PhonePe. However, Walmart will not reduce its stake during this IPO.
IPO Size and Valuation
The estimated size of PhonePe's proposed IPO is between ₹10,000 to ₹13,000 crore. Following this IPO, the company's total valuation could reach approximately $10 to $12 billion. With growing investor interest and the company's b market share, enthusiasm in the market for this IPO has increased.
Experts suggest that PhonePe's IPO will be quite attractive from an investment perspective in the fintech sector. Given the increasing competition in digital payments and the popularity of UPI, this IPO could offer profit opportunities for investors.
IPO Management and Bankers
Investment bankers such as J.P. Morgan, Morgan Stanley, Citigroup, and Kotak Mahindra Capital have been appointed to manage PhonePe's IPO. These bankers will be responsible for ensuring the IPO is launched at the right time and in a transparent manner for investors.
Experts believe that the involvement of these bankers will boost investor confidence and strengthen the likelihood of a successful IPO.
Market Impact
The news of PhonePe's IPO has created a stir in the fintech and digital payments sector. Investors are excited about this IPO, as it not only reflects the company's growth but also opens new investment opportunities in the Indian fintech industry.
