PhonePe Becomes A Public Company Ahead Of IPO: All You Need To Know

The Fintech firm PhonePe has transitioned from being a private firm to a public company ahead of its initial public offering (IPO), the digital payments player told the Registrar of Companies (RoC), which is a necessary legal step for companies that are looking to list on Indian stock markets.

The digital payments platform which is owned by Walmart had said previously that it was going to start preparatory steps for a potential IPO.

In its extraordinary general meeting on April 16, the company decided to change its name from "PhonePe Private Limited" to "PhonePe Limited."

This is a change that needs to be approved by the Central Processing Centre, Ministry of Corporate Affairs by issuing a fresh certificate of incorporation, the company said.

Additionally, the company has also redomiciled or changed its domicile from Singapore to India in December 2022. PhonePe also said that it has established a clear corporate structure with each of its new non-payment business aa fully owned subsidiaries.

Why Is PhonePe Mulling An IPO?

This is also a suitable time for the firm to prepare for a public listing with its strong top-line and bottom-line growth across its diverse business portfolio, as detailed in its FY23-24 annual report, the company said.

At the time of its last private fundraising PhonePe was valued at nearly $12 billion.

PhonePe, headquartered in Bengaluru, is the country's largest digital payments player with close to 48% market share in Unified Payments Interface (UPI), the real-time mobile payments platform run by National Payments Corporation of India. Google Pay is the second largest player in the country with around 37% of the market share.

In the financial year 2023-24, the Bengaluru-based company reported a 73% year-on-  year rise in revenue at Rs 5,064 crore. 

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