Source: Inc24.com
In what is another step towards its much-awaited initial public offering (IPO), the popular Indian digital payments platform PhonePe has become a public limited company. The step also aligns with its plan to list on Indian stock exchanges, which is expecting a valuation of around $15 billion.
Corporate Restructuring and Shift of Strategy
“The members are hereby informed that, as one of the prerequisites for the process of initial public offering, the company is required to convert into a public limited company under the Companies Act, 2013,” PhonePe said in a regulatory filing with the Registrar of Companies (RoC).
The name of the company will be changed from “PhonePe Private Limited” to “PhonePe Limited”.
PhonePe moves its registered office from Singapore to India in 2022, making it the first major digital payments entity to relocate its registered office to India. The redomiciling process cost the firm over ₹8,000 crore in taxes but was important to make compliance with Indian regulations and strengthen its local market identity. Now, with its conversion into a public limited company under the Companies Act, 2013, PhonePe is one step closer to launching its IPO.
Performance on the Market and Work of Users
PhonePe in the last few years has moved to a hyper growth stage. By early 2025, it provides services to over 590 million users in surrounding entities and more than 40 million merchants . Processing over 310 million transactions a day, the platform boasts a 47.8% share of the overall UPI (Unified Payments Interface) market.
In FY 2023–24, PhonePe posted a 73.78% surge in operating revenue, reaching ₹5,064 crore. Additionally, the company significantly cut down its losses by 28.6%, reducing them to ₹1,996 crore—demonstrating a clearer path to profitability.
Aggregate Investor Sentiment and Investment Flows
Having strong backing from global retail behemoth Walmart, which owns an 83.91% stake in PhonePe, the company has managed to get top-notch investors on board. Among them are Microsoft, General Atlantic, Tiger Global, Ribbit Capital, Tencent, TVS Capital and the Qatar Investment Authority. Late in 2023, PhonePe raised $100 million of a $1 billion funding round that gave the company a pre-money valuation of $12 billion.
IPO Preparation in Full Swing
PhonePe has appointed a group of top-tier investment banks, including JP Morgan, Morgan Stanley, Kotak Mahindra Capital, and Citi, to take the lead on its IPO process. The firm also plans to begin the paperwork for an initial public offering in March 2025 at the earliest.PhonePe’s initial public offering was a cause for much celebration within the Indian fintech ecosystem, coming after a series of disappointing debuts by rivals, including Paytm and MobiKwik. They’ve got solid financials, and they sell the kind of
conclusion, and the support of a substantial pool of investors, the listing could also unleash value and solidify India’s position as a global leader in digital payments.
