PhonePe wants to be valued at $15 billion before its initial public offering (IPO).

In a significant step toward its planned initial public offering (IPO), fintech giant PhonePe, a major participant in India’s digital payments market, has formally become a public limited company. Following an Extraordinary General Meeting on April 16, this transformation was completed and is awaiting final Ministry of Corporate Affairs approval. The company wants to be valued at up to $15 billion, which demonstrates its determination to grow and establish itself in India’s rapidly developing fintech industry. Kotak Mahindra Capital, JP Morgan, Citi, and Morgan Stanley have joined PhonePe as its IPO consultants, with Walmart’s backing.

This strategic shift is part of PhonePe’s comprehensive corporate restructuring, which saw the company relocate its domicile from Singapore to India in December 2022. This restructuring involved establishing non-payment verticals as fully owned subsidiaries, which illustrates PhonePe’s strategy to diversify and strengthen its operational base beyond digital payments. The reorganisation reflects PhonePe’s intent to enhance operational efficiency and ensure compliance within its primary market, India.

On February 20, the digital payments platform owned by Walmart announced it was taking initial steps towards a potential IPO. Later, on February 25, news reports revealed that PhonePe had appointed Kotak Mahindra Capital, JP Morgan, Citi, and Morgan Stanley as advisors for the IPO, aiming for a valuation of around $15 billion.

During the extraordinary general meeting on April 16, the company approved a name change from “PhonePe Private Limited” to “PhonePe Limited”, according to a document filed with the RoC.

PhonePe redomiciled its headquarters from Singapore to India in December 2022, establishing a clear corporate structure with its new non-payment businesses as fully owned subsidiaries. Valued at approximately $12 billion in its most recent private fundraising round, the Bengaluru-based company currently commands close to 48% of India’s Unified Payments Interface (UPI) market, positioning it as a leader significantly ahead of competitors like Google Pay, which holds approximately 37% market share.

The company’s dominant market dominance in the UPI ecosystem is a crucial part of its pricing strategy as it prepares for its initial public offering (IPO). PhonePe’s strong market presence highlights its crucial position in India’s quickly changing fintech sector, where digital payments are still expanding at a rapid pace.

PhonePe recorded revenue of Rs 5,064 crore in fiscal year 2024, a notable 73 percent year-over-year rise. Compared to the Rs 738 crore loss in the prior year, its Profit After Tax (PAT) for the year was a significant increase at Rs 197 crore.