PhonePe Begins IPO Preparations: Set to Become India's Third Fintech Listing in 5 Years
PhonePe IPO: A Major Milestone in India’s Fintech Industry
Leading digital payments platform PhonePe has officially begun preparations for its initial public offering (IPO) in India. This comes more than two years after the company shifted its domicile from Singapore to India, marking a key step in its growth journey.
If successful, PhonePe will become the third fintech company to go public in India within five years, following the stock market debuts of Paytm and MobiKwik.
Why is PhonePe Going Public? Strong Revenue Growth & Market Leadership
PhonePe has cited its strong financial performance as the primary reason for its IPO plans. The company’s revenue from operations surged by 73.8% in FY24, reaching ₹5,064 crore, up from ₹2,914 crore in FY23. Additionally, PhonePe managed to narrow its net loss to ₹1,996 crore in FY24, down from ₹2,795 crore in the previous fiscal year.
Since its redomiciling to India in December 2022, PhonePe has structured its business by establishing fully-owned subsidiaries for its non-payment services. The company also paid around $1 billion in capital gains tax to complete this transition.
PhonePe’s Market Share & Competitive Edge in India’s UPI Ecosystem
As of January 2025, PhonePe dominates the UPI market with a 47.67% share, making it India’s leading third-party application provider (TPAP) for digital transactions. The company boasts:
- 590 million+ registered users
- 40 million+ merchants accepting payments nationwide
This strong user base and merchant network have contributed to PhonePe’s rapid expansion in India's fintech landscape.
Regulatory Relief Clears Path for PhonePe’s IPO
A major regulatory challenge for PhonePe was the proposed market share cap on UPI transactions, which could have limited its growth. However, in December 2024, the National Payments Corporation of India (NPCI) extended the deadline for implementing this cap by another two years, giving PhonePe a significant boost.
PhonePe IPO: What’s Next?
With its dominant market position, strong financials, and regulatory clarity, PhonePe is now well-positioned to launch its IPO. The public listing is expected to be one of the biggest fintech IPOs in India, attracting strong investor interest.
Stay tuned for further updates on PhonePe’s IPO date, valuation, and market impact!