PhonePe Gears Up for IPO: A Landmark Moment in India's Fintech Evolution

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In a significant move, fintech giant PhonePe has initiated preparations for a potential Initial Public Offering (IPO) in India, marking a decade of its operations. This development positions PhonePe to become the third major fintech firm to list on Indian stock exchanges in the past five years, following the footsteps of Paytm and MobiKwik.

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Founded in India, PhonePe has always envisioned becoming a publicly listed company within the country. In December 2022, the company redomiciled from Singapore to India, establishing a clear corporate structure with its non-payment businesses as fully-owned subsidiaries. This strategic move underscores PhonePe's commitment to the Indian market and its regulatory framework.

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The company's financial trajectory has been impressive. In the fiscal year 2023-24 (FY24), PhonePe reported a consolidated revenue from operations of ?5,064 crore, reflecting a 73.8% increase from ?2,914 crore in the previous fiscal year. Moreover, the net loss narrowed to ?1,996 crore in FY24 from ?2,795 crore in FY23, indicating improved operational efficiency.

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A pivotal factor influencing PhonePe's IPO timing was the proposed market share cap by the National Payments Corporation of India (NPCI) on Unified Payments Interface (UPI) transactions processed by third-party application providers. In August 2024, CEO Sameer Nigam highlighted that this overhang was a consideration in their public listing plans. However, with the NPCI extending the deadline for implementing this volume cap by another two years in December, PhonePe's path to IPO has become clearer. As of January 2025, PhonePe leads the UPI market with a 47.67% share, serving over 590 million registered customers and maintaining a payment acceptance network encompassing over 40 million merchants.

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This IPO initiative not only signifies PhonePe's growth and market leadership but also reflects the dynamic evolution of India's fintech landscape.

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