UPI payments giant PhonePe converts into a public limited company ahead of IPO

PhonePe, the Walmart-backed digital payments firm, has transitioned into a public company as it prepares for a long-anticipated initial public offering (IPO) in India.

According to filings with the Registrar of Companies, the Bengaluru-based UPI payments giant converted from PhonePe Private Limited to PhonePe Limited following an extraordinary general meeting held on April 16.

The change is pending final approval from the Ministry of Corporate Affairs' Central Processing Centre, which must issue a fresh certificate of incorporation.

This structural shift is a critical step in the IPO process, aligning PhonePe with the compliance norms required for companies looking to list on Indian stock exchanges.

IPO plans

The move comes as PhonePe accelerates its IPO roadmap. The company has reportedly engaged Kotak Mahindra Capital, JP Morgan, Citi, and Morgan Stanley to steer the listing process. Reportedly, it is targeting a valuation of around $15 billion, up from its last-known $12 billion valuation.

"PhonePe, our fintech business, is making preparations for an IPO in India. Our PhonePe team has long aspired to be a public company and we are excited to be taking these early steps," said Doug McMillon, CEO of Walmart, during the company's earlier announcement in February this year.

PhonePe, which shifted its domicile from Singapore to India in December 2022, had previously signalled its intent to go public. The company's restructuring also included the establishment of a corporate architecture that places each of its emerging non-payment verticals under separate subsidiaries.

Market presence

The fintech major commands nearly half of India's Unified Payments Interface (UPI) market and remains the largest digital payments player in the country. In FY24, PhonePe reported revenue of Rs 5,064 crore, representing a 73% year-over-year growth. 

Investors in PhonePe include a cohort of global names—General Atlantic, Tiger Global, Ribbit Capital, Microsoft, Tencent, Qatar Investment Authority, and TVS Capital—alongside Walmart, its majority owner.