Walmart Inc.’s financial gem, PhonePe, is getting ready for a huge expansion. According to reports, the firm, which is the biggest digital payments network in India, intends to earn up to $1.5 billion through an initial public offering (IPO), which could put its valuation at an incredible $15 billion. With more than 610 million registered users and a dominant position in the UPI ecosystem, PhonePe’s public offering may be a turning point for the company as well as the Indian startup and fintech scene as a whole. With the support of a number of influential investors and international financial consultants, this IPO may mark the entry of Indian fintechs into the global financial arena.
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Credits: Business Standard
In this article, we explore the ambitious IPO plans of India’s leading digital payments platform, PhonePe, its journey so far, the players involved in the offering, and the larger implications for India’s fintech ecosystem.
From Startup to Fintech Behemoth
The 2015-founded digital payments pioneer PhonePe is now preparing for its biggest milestone to date: an IPO with a target of raising up to $1.5 billion. According to those with knowledge of the situation, the IPO is anticipated to value the business at about $15 billion.
With its easy and safe payment process, PhonePe, which was founded in the early stages of India’s UPI (Unified Payments Interface) revolution, swiftly became a customer favorite. Financial services like investments, insurance, and bill payment have been added to its list of services over time.
With more than 610 million registered users and daily transactions totaling Rs 34 crore, PhonePe has developed into a vital component of the digital economy in India.
Draft Red Herring Prospectus Likely by August
Sources indicate that the company is planning to file its Draft Red Herring Prospectus (DRHP) by as early as August 2025. However, discussions are still ongoing, and the final structure or timing may change depending on market conditions.
The IPO, if successful, would be among the largest public listings in the Indian startup ecosystem, especially in the fintech space, where investor interest remains strong despite global macroeconomic headwinds.
Who’s Behind the Deal?
PhonePe has roped in an impressive lineup of global and domestic financial institutions to manage its IPO. The list includes:
- Kotak Mahindra Capital Co.
- JPMorgan Chase & Co.
- Citigroup Inc.
- Morgan Stanley
These players are expected to handle everything from due diligence and pricing to marketing and investor outreach, underscoring the scale and complexity of the proposed listing.
A Steady Climb in Valuation
PhonePe’s valuation has seen a sharp rise over the years. In 2023, it raised $100 million from prominent investors like Ribbit Capital, Tiger Global, and TVS Capital Funds, pegging its value at $12 billion at the time.
The projected $15 billion valuation for the IPO not only reflects PhonePe’s growth but also the increasing investor confidence in India’s digital payments infrastructure and future profitability of fintech ventures.
Why Now? Timing the Market
There are several strategic reasons why PhonePe is looking to go public now:
- Market maturity: India’s digital payment landscape has stabilized, with UPI becoming a household utility.
- Strong user base: With over 610 million users, PhonePe commands a loyal audience and consistent transaction volume.
- Walmart’s support: As a Walmart Inc. subsidiary, PhonePe benefits from both financial backing and global credibility.
- IPO momentum: Multiple Indian startups, from Zepto to Swiggy, are preparing to list in the next 12–18 months, creating a ripple effect.
However, regulatory shifts, intense competition, and profitability expectations will remain key challenges in the public market.
A Defining Moment for India’s Fintech Sector
More than just a fundraising event, PhonePe’s IPO will mark a turning point in the fintech industry in India. It marks the shift of digital payment startups from privately held, growth-oriented businesses to publicly traded firms with investor accountability.
If PhonePe is successful, it might serve as a model for other unicorns thinking about taking the public road and encourage further investment and innovation in the financial technology industry in India.
Credits: Moneycontrol
Conclusion
PhonePe’s upcoming IPO is poised to be a game-changer, not just for the company, but for the entire Indian startup ecosystem. Backed by strong fundamentals, deep market penetration, and institutional trust, PhonePe is ready to take the leap into public markets—ushering in a new era for Indian fintech.
