DK Business Network
PhonePe, the digital payments giant backed by Walmart, is taking its first steps toward a public listing in India, signalling a growing trend among tech startups seeking to capitalize on the strong valuations of the Indian stock market. The company, however, remains in the early stages of preparation and has not disclosed specific details regarding its IPO timeline.
“Our PhonePe team has long aspired to be a public company, and we are excited to be taking these early steps,” said Mr. Doug McMillon, President and CEO of Walmart, during the company’s earnings call. The move aligns with the company’s long-term vision of solidifying its market leadership and unlocking new growth opportunities through public investment.
PhonePe, a leading player in India’s digital payments ecosystem, faces stiff competition from rivals like Paytm and Google Pay. In December 2022, the company underwent a significant restructuring, separating from Flipkart and redomiciling from Singapore to India. This strategic shift allowed it to streamline its corporate structure, with its various non-payment ventures now operating as fully owned subsidiaries.
Highlighting its financial strength, PhonePe executives noted that the company has been witnessing substantial top-line and bottom-line growth across its diverse portfolio. The company’s Total Payment Value (TPV) reached Rs.1.7 trillion as of January 2025, with an impressive daily transaction volume exceeding 300 million. At present, PhonePe holds a valuation of $12 billion, reinforcing its position as one of India’s most valuable fintech firms.
The company’s IPO plans coincide with a surge in public listings by Indian startups. A new wave of companies, including Zepto, Groww, Infra.Market, Pine Labs, and Lenskart, are actively preparing to enter the stock market this year. The Indian IPO landscape witnessed a significant revival in 2024, with prominent unicorns such as Swiggy, FirstCry, and Ola Electric making their public market debuts after a three-year lull in big tech listings.
Meanwhile, Walmart reported steady growth in its Indian operations during its Q4FY25 earnings. However, the year-on-year international business performance was slightly impacted by the rescheduling of Flipkart’s annual Big Billion Days (BBD) sale, which took place in Q3 instead of Q4, affecting comparative revenue figures.