PhonePe Picks Four Banks For IPO, Seeks Up To $15 Bn Valuation

SUMMARY

PhonePe has onboarded Kotak Mahindra Capital, JP Morgan, Citi, and Morgan Stanley as its advisors for the IPO

The company is eyeing a valuation of $15 Bn through the public listing

The IPO is likely to be a combination of primary and secondary issuance of shares

Walmart-owned PhonePe has reportedly picked four investment banks to advise on its upcoming initial public offering (IPO) as the company in India prepares to enter the domestic tech IPO space, aiming for a valuation of up to $15 Bn.

As per Moneycontrol’s report, citing industry sources, the company is planning to initiate the IPO process in the first week of March, bringing onboard Kotak Mahindra Capital, JP Morgan, Citi, and Morgan Stanley as its advisors. Additional advisors may be added later if necessary.

The IPO is likely to be a combination of primary and secondary issuance of shares, with the listing expected in FY26, another source added.

The company was valued at $12 Bn, following its funds raised in 2023.

The report highlighted that during its initial meeting on the public listing, the issuer firm discussed key plans and the roadmap for the IPO along with the roles and responsibilities for the advisors onboarded recently.

One of the sources confirmed that given the market debut plans being in early stages, there would be changes depending on the market conditions.

Responding to Inc42’s queries on the development, PhonePe said, “We won’t be sharing any comments on this right now.”

This development comes at a time when around 25 startups across the country have disclosed their plans to make entry into the exchanges in 2025.

Meanwhile, reports revealed that boAt is soon planning to file its draft red herring prospectus (DRHP) for its initial public offering (IPO) via confidential filing route.

Furthermore, online meat and seafood seller Licious was reportedly targeting a valuation of more than $2 Bn through the IPO.

To note, startups are also aiming for profitability while some are engaged in the process of shifting their domicile to India.

On the financial front, Bengaluru-based PhonePe narrowed its consolidated net loss by 28% to INR 1,996 Cr in FY24, from INR 2,795 Cr, a year ago. Meanwhile, its operating revenue zoomed almost 74% to INR 5,064 Cr in FY24 from INR 2,914 Cr a year ago.

Updated at 02:20 PM