IPO-Bound PhonePe Converts Into Public Entity

Walmart-owned PhonePe has converted into a public company, marking a major step in preparation for its initial public offering (IPO).

As per its regulatory filing, the startup got the approval of its members at an extraordinary general meeting held on April 16 to change its name to ‘PhonePe Limited’ from ‘PhonePe Private Limited’.

Entrackr reported the development first.

PhonePe also informed the members that as a part of its prerequisite for the proposed IPO, it is required to change from a private limited to a public limited company, the filing added.

This comes at a time when the company kicked off preparations for a potential listing in the country over two years after it reverse flipped from Singapore.

For the same, it reportedly roped in four investment banks in February to advise on its IPO.

PhonePe’s IPO Might

PhonePe, which presently holds the largest UPI market in terms of transaction volume and value, is presumably being considered as one of the largest startup IPOs of the year. 

Back in February, when the company made its IPO announcement, it came as a long due announcement as the talks around the same had been going on for some time now. 

But with an unprecedented 13 startups going IPO in 2024 and the market rewarding the companies for most of the year, PhonePe seemed to be confident enough to declare its IPO plans for the first time earlier this year.

Besides the confidence from UPI market dominance, PhonePe is also witnessing robust year-on-year growth in revenue terms. For FY24, its operating revenue was up 74% year on year at INR 5,064 Cr. Moreover, it has maintained the YoY revenue growth rate seen in FY23 at 77% previously. 

Alongside this, the company has been able to pave the path towards profitability since FY24. It narrowed its consolidated net loss by 28% to INR 1,996 Cr in FY24 from the INR 2,795 Cr loss in FY23, led by a boost in its topline and cost efficiency.

Adding to its IPO zeal is the fact that the company was valued at $12 Bn in its last funding round in 2023, and the revenue has soared 77% since then in FY24. 

PhonePe is among the several fintech startups lined up for IPO this year. While Razorpay converted into a public entity yesterday, Pine Labs also recently got the NPCI’s nod to ‘reverse flip’ to India for its IPO. 

While Paytm and MobiKwik are the listed entities in this segment, PayU is also said to be eyeing an IPO in 2025.