Walmart-backed PhonePe seeking USD 10 billion valuation during its IPO

Walmart-backed PhonePe seeking USD 10 billion valuation during its IPO

Digital payments firm PhonePe is reportedly planning to raise funds during its stock market debut to expand its financial services portfolio as well as deepen its core UPI (United Payments Interface)-based payments operations.

For those unaware, PhonePe was founded in the year 2015 and was partially spun off from e-commerce major Flipkart back in 2020. While Flipkart currently owns around 87% of PhonePe, Walmart directly owns approximately 10%.

The company had managed to raise USD 700 million in funding in the year 2020 which was spearheaded by Flipkart and Walmart, valuing it at USD 5.5 billion back then. Across 13 fundraisings, PhonePe has secured a total of USD 1.7 billion from prominent investors including Tencent and Tiger Global Management.

The digital payments giant currently is the leader in the UPI space, accounting for a whopping 47% market share in monthly transactions in India.

The Walmart-backed company intends to reach a valuation of around USD 10 billion during its Initial Public Offering (IPO) once its core businesses turn profitable. PhonePe is expected to soon engage with legal consultants and bankers to move forward with its public listing.

To support its “Made In India” credentials, PhonePe is also looking to move its holding company from Singapore. The financial behemoth is looking to list on the Indian stock exchange as compared to other startups that have preferred to go public overseas given the friendlier tax laws.

But the company was never in a hurry for a market debut, according to CEO Sameer Nigam. PhonePe has just trimmed the surface in financial services and is looking forward to venturing into other verticals such as insurance.

Apart from this, PhonePe is also looking to increase the strength of its workforce to around 5,200 by the end of this year, riding on the mounting volumes of UPI-based transactions seen in India. It is worth noting that the company currently has around 2,600 staff and at least 2,800 openings in Pune, Bengaluru, Delhi, and Mumbai.

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Rashi Thakkar

Rashi Thakkar

Rashi started her journey in content when she was completing her MBA. Since then, she has helped well-known startups and businesses boost their online presence. Currently Rashi pens downs insightful articles for AlpenHornNews and various other websites, covering an array of sectors from finance and business to technology and healthcare.