PhonePe, a prominent player in digital payments, has announced its initiation of the process for a potential public listing on the Indian stock exchanges, as stated in a release today. While not specifying a specific timeline for completing the initial public offering (IPO) procedures, the company noted its favourable revenue growth and progress toward profitability as factors prompting the decision to embark on preparations for an IPO.
This development follows over two years of PhonePe relocating its headquarters from Singapore to India. Established by Sameer Nigam and Rahul Chari, PhonePe holds a dominant position in the Unified Payments Interface (UPI) sector, commanding approximately 47% of the market share.
Subsequently, the fintech startup separated its various business ventures – including insurance, international payments, and insurance distribution – into distinct subsidiary entities under the parent company.
The company stated, “PhonePe’s strong top-line and bottom-line growth across its diverse business portfolio, as detailed in its FY23-24 annual report, makes this a suitable time to prepare for a public listing.”
In December 2022, PhonePe moved its main office from Singapore to India with the goal of being listed on local stock exchanges. As a result, the fintech company, led by Sameer Nigam, reorganized its corporate structure by establishing its new non-payment ventures as wholly-owned subsidiaries in anticipation of its IPO strategy.
PhonePe recently made the decision to leave the account aggregator business earlier this month and transitioned to a partnership model with existing AAs. In less than two years of obtaining its non-banking financial company AA license, the company voluntarily surrendered it to the Reserve Bank of India.
By August 2024, the leading digital payments company achieved a positive adjusted profit after tax (PAT) of Rs 197 crore in FY23-24, excluding ESOP-related costs. This followed a recovery from a loss of Rs 738 crore in FY22-23. Additionally, PhonePe reported a significant 74% year-on-year revenue growth, with revenue reaching Rs 5,064 crore in the previous fiscal year, up from Rs 2,914 crore.
In the fiscal year 2024, PhonePe recorded an operating revenue of Rs 5,064 crore, with a net loss of Rs 1,996 crore. By excluding employee stock options from the financial calculations related to core business activities, the company reported a net profit of Rs 197 crore.
According to a company statement, as of January 2025, PhonePe, headquartered in Bengaluru, boasts more than 590 million registered users and over 40 million merchants. The platform also facilitates over 310 million daily transactions, with an annualized total payment value (TPV) exceeding Rs 145 lakh crore.