Kotak Mahindra Capital, JPMorgan Chase, Citigroup, and Morgan Stanley have been appointed as lead managers for the offering.
According to sources, PhonePe aims to raise $1.5 billion through the IPO and is targeting a valuation of up to $15 billion. The company is expected to use the funds to scale up its financial services play, strengthen existing businesses, and pursue strategic acquisitions.
Backed by Walmart, PhonePe is one of India’s largest digital payments platforms, offering services across UPI, insurance, mutual funds, gold, and lending.
Founded in 2015 by Sameer Nigam, Rahul Chari, and Burzin Engineer, PhonePe was acquired by Flipkart in 2016. Following Walmart’s acquisition of Flipkart in 2018, PhonePe became part of the retail giant’s India portfolio.
In an exclusive conversation with CNBC-TV18 in May last month, chief executive, Sameer Nigam said the company’s core payments business had reached maturity and market leadership, and it was now ready to embrace the transparency and accountability that comes with being a listed entity.
“We should hopefully remain stable and be profitable in years to come,” Nigam said, adding that the business and the sector were “in a good place.”
He added that PhonePe is now diversifying into new lines of business and “ready to take on a larger role” in India’s digital ecosystem. Nigam said going public is not just a financial decision but a “responsible action” that enhances its credibility with regulators, investors, and users.
In 2023, PhonePe separated from Flipkart in a full demerger and subsequently shifted its domicile from Singapore to India, paving the way for a domestic listing.
As of 2023, PhonePe has raised over $1 billion with the latest round valuing the company at $12 billion. Key investors include Walmart, General Atlantic, Ribbit Capital, Tiger Global and TVS Capital Funds.
Meanwhile, Flipkart is also preparing for an IPO later this year. As CNBC-TV18 reported earlier this year, Flipkart has already completed its Singapore-to-India domicile shift as part of its listing preparations.
PhonePe’s IPO is likely to be one of the most closely watched tech listings in India this year, with investor interest running high in the fintech and digital payments space.
