PhonePe, the digital payments heavyweight backed by Walmart, has lined up four major merchant bankers—JP Morgan, Citi India, Morgan Stanley, and Kotak Mahindra Capital—to steer its Initial Public Offering (IPO), according to a CNBC-TV18 report.
The fintech firm, which shifted its domicile from Singapore to India in December 2022, is reportedly preparing for a domestic listing.
While the company hasn’t officially disclosed how much it plans to raise, reports suggest that PhonePe might be eyeing a multi-billion-dollar haul, potentially targeting a valuation of around $15 billion.
The IPO process is expected to kick off in the first week of March.
PhonePe, which turns 10 this year, has grown into one of India's largest digital payment platforms, processing a staggering 770 crore transactions per month, with a total transaction value of ₹10.5 lakh crore.
Last year, in its most recent funding round, PhonePe was valued at $12 billion.
Shifting its base to India came at a cost. The company paid around ₹8,000 crore in taxes for the move. Walmart, the majority stakeholder through its Luxembourg-based entity FIT Holdings SARL, footed a significant part of that bill.
As of March 2024, Walmart holds 83.91% of the company, while General Atlantic Singapore owns 5.14%, and PhonePe’s Singapore subsidiary retains a 6.7% stake.
PhonePe’s decision to go public in India aligns with its long-term strategy of being a fully homegrown fintech player. The company has also set up a structured corporate framework, with its new non-payment businesses functioning as wholly owned subsidiaries.
While details are still under wraps, this IPO will likely be a major event in India's fintech space. With investor interest high and the digital payments sector booming, PhonePe’s market debut could be one to watch.