Key Highlights:
- IPO Plans: PhonePe, a leading Indian fintech company, has begun preparations for an Initial Public Offering (IPO) on Indian stock exchanges.
- Corporate Restructuring: The company separated from Flipkart and relocated its headquarters from Singapore to India in December 2022, paying approximately ₹8,000 crore in taxes.
- Financial Performance: In the fiscal year 2023-2024, PhonePe reported a 73% increase in revenue, reaching ₹5,064 crore, and an adjusted Profit After Tax (PAT) of ₹197 crore.
Summary: PhonePe, a prominent player in India’s digital payments landscape, has announced the initiation of preparatory steps for a potential IPO, aiming to list on Indian stock exchanges. This development coincides with the company’s 10th anniversary, marking a decade of delivering innovative financial services to millions of customers.
In December 2022, PhonePe underwent significant corporate restructuring by separating from its parent company, Flipkart, and relocating its domicile from Singapore to India. This strategic move involved a substantial tax payment of approximately ₹8,000 crore to the Indian government and facilitated a clearer corporate structure, with each new non-payment business operating as a fully owned subsidiary.
Founder Sameer Nigam had previously expressed reservations about pursuing an IPO without clarity on market share caps, particularly concerning the Unified Payments Interface (UPI) market. However, with the company’s robust financial performance and market position, PhonePe now deems it an opportune time to proceed with public listing plans.
In the fiscal year 2023-2024, PhonePe achieved a remarkable 73% year-on-year revenue growth, totaling ₹5,064 crore. This surge was driven by cost efficiencies and diversification into new product lines. The company also reported an adjusted Profit After Tax (PAT) of ₹197 crore, a significant turnaround from a loss of ₹738 crore in the previous fiscal year.
As PhonePe embarks on this new chapter, its focus remains on expanding its suite of financial services and technology solutions, aiming to provide every Indian with equal opportunities to accelerate their financial progress.
