PhonePe IPO Prep Amid Market Share Cap Concerns

Walmart-owned PhonePe has initiated preparations for a potential initial public offering (IPO) to be listed on Indian stock exchanges. This move is seen as a significant milestone for PhonePe, which has seen strong growth, processing over 300 million daily transactions and commanding a 48% market share in the Unified Payments Interface (UPI) sector. PhonePe, valued at $12 billion, recently re-domiciled from Singapore to India, paying ₹8,000 crore in taxes, and has organized its business into subsidiaries. The IPO plans come amid regulatory considerations regarding UPI market share caps, which have previously delayed the company's listing plans. Despite these concerns, PhonePe's revenue rose by 73% to ₹5,064 crore in FY24, with a significant improvement in profitability. The company aims to leverage its strong financial performance and market leadership to attract investors as it commemorates its 10th anniversary.