PhonePe Files for $1.5 Billion IPO at $15 Billion Valuation
Digital payments leader PhonePe has submitted updated papers to SEBI for a massive initial public offering (IPO) aiming to raise up to $1.5 billion. The company is targeting a valuation of $15 billion, setting the stage for one of India’s largest public listings in recent years.
Key Takeaways
- IPO Size: $1.5 billion ($1 bn fresh issue + $500 mn offer for sale).
- Target Valuation: $15 billion.
- Expected Listing: By end of 2024.
- Parent Walmart will not sell any shares in the offering.
- Financials Improve: H1 revenue up to ₹1,914 cr; loss narrows sharply to ₹292 cr.
IPO Structure and Timeline
According to the updated draft red herring prospectus (DRHP) filed with SEBI, the IPO comprises a fresh issue of shares worth $1 billion. Additionally, existing shareholders will sell shares worth $500 million. The company is reportedly targeting a listing on Indian stock exchanges before the close of 2024.
Notably, PhonePe’s parent company, retail giant , will not participate in the offer-for-sale segment. This updated filing follows an initial DRHP submitted in December 2023 and includes the company’s financial performance for the first half of the current fiscal year.
PhonePe’s Market Dominance and Expansion
PhonePe commands over 50% market share in India’s digital payments space by transaction value. The fintech major has successfully diversified its portfolio beyond core payments. It now offers a suite of financial products including insurance, mutual funds, and stock trading, positioning itself as a comprehensive financial services platform.
Strengthening Financial Performance
The updated filing reveals a robust improvement in PhonePe’s financial health. For the first half of the current financial year, the company’s revenue grew to ₹1,914 crore, up from ₹1,646 crore in the same period last year.
More significantly, its net loss narrowed dramatically to ₹292 crore, compared to a loss of ₹1,728 crore in H1 of the previous year. This improved profitability is a key factor for investor confidence ahead of the public listing.
A Litmus Test for Indian Tech
The success of PhonePe’s mega-IPO is being closely watched as a barometer for investor sentiment towards Indian technology companies. The public markets will test appetite for high-value tech listings, especially after a period of valuation corrections in the sector. A successful debut could pave the way for other major fintech and tech IPOs in India.
