PhonePe, the Walmart-backed Indian payments company, is targeting an initial public offering (IPO) valuation of between $9bn and $10.5bn, Reuters reported quoting two people with direct knowledge of the matter.
The implied valuation would be below the $12bn level at which PhonePe raised $100m in private markets in 2023.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
According to the report, the IPO could raise about $900m to $1.05bn, based on that valuation range.
The listing will see Walmart reducing its stake in PhonePe by about 12%. Other stakeholders Tiger Global and Microsoft plan to exit their holdings.
The filing also shows that the three shareholders will sell around 50.7 million shares, and that PhonePe will not issue any new shares.
PhonePe aims to complete the process by April, one of the sources to the news agency. However, the timeline could change depending on capital market conditions, including any impact from the Middle East conflict.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataIf completed, PhonePe’s listing would be India’s second-largest fintech IPO after Paytm’s listing in 2021, which was valued at about $20bn. Paytm currently has a market capitalisation of $7.1bn.
PhonePe reported more than 650 million registered users. Regulatory data showed the company processed nearly 10 billion of the 21.7 billion transactions on India’s Unified Payments Interface (UPI) in January.
The company recently introduced biometric authentication for UPI payments. The feature allows users to approve eligible transactions using a smartphone fingerprint or facial recognition.
