Walmart-backed PhonePe gears up for IPO

Walmart-backed PhonePe announced on Thursday that it has begun preparations for its IPO on Indian stock exchanges.

Although the company hasn't set a timeline yet, the decision follows strong revenue growth and progress toward profitability.

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According to a press note, the company said, "PhonePe's strong top-line and bottom-line growth across its diverse business portfolio, as detailed in its FY23-24 annual report, makes this a suitable time to prepare for a public listing."

In December 2022, PhonePe moved its headquarters from Singapore to India, with plans to list on Indian stock exchanges. The fintech company, led by Sameer Nigam, then created a clear corporate structure by making each of its new non-payment businesses fully owned units in preparation for its public debut.

Earlier this month, PhonePe exited the account aggregator (AA) business and switched to a partnership model with existing AAs. After holding it for less than two years, the company gave up its non-banking financial company AA (NBFC-AA) license to the Reserve Bank of India.

PhonePe, acquired by Flipkart in 2016 and spun off in 2020, is still a major asset for Walmart, which owns 71% of the company. In May 2023, the fintech firm was valued at USD 12 billion after investments from General Atlantic, Ribbit Capital, and other investors.

In August 2024, PhonePe reported a profit of Rs 197 crore (excluding ESOP-related costs) for FY23-24, turning adjusted profit after tax (PAT) positive, after a loss of Rs 738 crore in FY22-23. The company also saw a 74% year-on-year revenue growth, reaching Rs 5,064 crore, up from Rs 2,914 crore in the previous year.

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