PhonePe Prepares for $1.5 Billion India IPO: Indias Fintech Sector Continues to Boom
PhonePe, the Walmart-backed Indian fintech firm, is reportedly gearing up for an initial public offering (IPO) that could raise up to $1.5 billion, according to Bloomberg. The IPO is expected to value the company at approximately $15 billion, with plans to file a draft red herring prospectus as early as August.
Founded in 2015, PhonePe is India's largest digital payments provider, with over 610 million registered users and processing 340 million transactions daily. The company serves more than 600 million registered users across 40 million merchants, handling over 310 million online transactions daily via India's unified payments interface (UPI).
In 2023, PhonePe raised $100 million from Ribbit Capital, Tiger Global Management, and TVS Capital Funds, valuing the company at $12 billion at the time. The firm has engaged Kotak Mahindra Capital Co., JPMorgan Chase & Co., Citigroup Inc., and Morgan Stanley to manage the offering.
Discussions are still ongoing, and details may change, according to Bloomberg's sources. A PhonePe spokesperson did not respond to Bloomberg's request for comment.
In May of this year, PhonePe launched an upgraded version of its SmartSpeaker, a device designed to facilitate payment voice notifications for merchants. The latest iteration of the SmartSpeaker is manufactured in India and retains the voice notification feature of the original model, which was introduced in 2022. The device supports 21 language options and includes a celebrity voice feature.
In April, the company introduced the UPI Circle feature on its app, enabling users to make payments to family members, friends, or other trusted individuals within a designated group.
PhonePe's reported plans for a $1.5 billion India IPO come as the fintech sector continues to grow rapidly in India and around the world. With its strong user base and innovative products, PhonePe is well-positioned to capitalize on this growth and continue its expansion in the digital payments space.
