By formally changing from a private limited company to a public limited company, India’s dominant player in digital payments, PhonePe, has made a big step toward the public markets. This significant legal shift, which is necessary for any business wishing to list on Indian stock exchanges, was verified in documents submitted to the Registrar of Companies (RoC) and represents a turning point in PhonePe’s development from a startup to an organization prepared for an initial public offering (IPO).
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Credits: Entrackr
With the support of Walmart, the world’s largest retailer, PhonePe is preparing for one of the most well-known fintech initial public offerings (IPOs) in the nation, with a target valuation of up to $15 billion.
From Startup to Stock Market: The Name Change That Signals More
The shareholders of PhonePe voted in support of renaming the firm from PhonePe Private Limited to PhonePe Limited during an extraordinary general meeting (EGM) on April 16. For businesses planning to go public in India, this is a crucial legal and procedural necessity, even though it may appear symbolic at first.
This is not the end of the formalities. A new certificate of incorporation is anticipated shortly after the company submitted documentation to the Ministry of Corporate Affairs (MCA) for approval. After it is accepted, PhonePe will formally become a public company, hastening its IPO planning even more.
IPO in Motion: Big Banks, Big Goals
PhonePe’s IPO journey officially began in February 2024, when the company disclosed that it had initiated internal processes to go public. Shortly afterward, Moneycontrol reported that the firm had appointed a consortium of top global and domestic banks as advisors: Kotak Mahindra Capital, JP Morgan, Citi, and Morgan Stanley.
These appointments underscore the scale and seriousness of the listing, with PhonePe reportedly eyeing a valuation of up to $15 billion—a significant jump from its last private valuation of $12 billion. If successful, the IPO could make PhonePe one of India’s most valuable publicly listed fintech companies.
Redomiciling and Restructuring: Cleaning House Before the Listing
As part of its IPO readiness, PhonePe has undertaken extensive internal restructuring. In December 2022, the company completed a strategic redomiciling move, shifting its base from Singapore to India. This move not only facilitates listing on Indian bourses but also aligns with regulatory expectations for companies operating in critical sectors like digital finance.
PhonePe has also streamlined its corporate structure. The company now operates with a parent entity overseeing a portfolio of fully owned subsidiaries, each responsible for its growing range of non-payment businesses—including wealth management, insurance tech, and lending. This clarity will help investors assess PhonePe’s individual business units more effectively when the company goes public.
Turning Profitable: FY24 Results Impress
Perhaps the biggest confidence boost for potential investors is PhonePe’s stellar FY24 financial performance. The company clocked ₹5,064 crore in revenue, up 73% from the previous year. More notably, it reported a net profit of ₹197 crore, reversing a substantial ₹738 crore loss in FY23.
This transformation from deep losses to profitability sets PhonePe apart in a fintech space often criticized for chasing growth at the cost of financial health. The company attributes this success to stronger monetization across verticals, operational efficiency, and scale in its payments and financial services offerings.
UPI Market Leadership: PhonePe’s Strongest Weapon
PhonePe’s dominant position in India’s digital payments landscape adds another layer of strength to its IPO case. As of FY24, the company commands a market share of nearly 48% in Unified Payments Interface (UPI) transactions—well ahead of competitors like Google Pay, which holds around 37%.
UPI is the backbone of digital payments in India, processing billions of transactions each month. PhonePe’s leadership here reflects deep consumer trust, a broad merchant network, and strong technology infrastructure—critical factors that will appeal to both retail and institutional investors.
Credits: Money Control
Walmart’s Crown Jewel in India
One of Walmart’s most valuable assets in India is PhonePe, which was purchased in 2018 as part of the Flipkart transaction. A successful IPO might confirm the U.S. retail behemoth’s long-term plan in the Indian digital economy and release substantial value.
Additionally, Indian fintech companies like Cred, MobiKwik, and Paytm are under pressure to provide better financials and more transparent routes to profitability at the same time as this IPO. The industry standards may be reset by PhonePe’s public launch.
