Key Points of PhonePe IPO 2024-2025:
- PhonePe plans to go public in India in 2024-2025, following its recent $200 million funding round from Walmart at a pre-money valuation of $12 billion.
- The company is in the process of a $2 billion fundraise, which will support new ambitions and help ride out the current tough phase for tech businesses going public.
- PhonePe investors faced a tax hit of Rs 8,000 crore after the company shifted its domicile from Singapore to India.
- PhonePe’s core payments business has triple-digit operating and revenue growth, and the CEO is confident the company will go public in India.
- Indian tech stocks have been less affected compared to their global peers despite significant losses.
- PhonePe’s CEO praised Paytm for its healthier business today compared to four quarters ago.
- The best of Indian startups will still find attractive valuations, and there is a shift in focus from growth to profitability with sustainable business models.
- Early-stage startups should be able to say no to investors and not feel bullied to grow at any cost, according to Nigam.
Details of PhonePe IPO 2024-2025:
PhonePe, a leading digital payments service provider, has announced its plans to go public in India, with an expected IPO in 2024-2025. This comes after the fintech platform secured an additional $200 million in primary capital from Walmart at a pre-money valuation of $12 billion in March.
PhonePe Co-founder and CEO Sameer Nigam stated that the company is in the process of a $2 billion fundraise, which is set to mostly close at the end of this month. Nigam added that this funding will support the company’s new ambitions, giving these new businesses a couple of years to get incubated.
Nigam also mentioned that the $2 billion funding will help the company ride out the current tough phase, which is not a good time for tech businesses to go public due to the global macroeconomic uncertainties, funding winter, and negative market sentiment.
PhonePe recently separated from the Flipkart Group, with several Flipkart shareholders, led by Walmart, acquiring shares in the separation. PhonePe investors faced a tax hit worth Rs 8,000 crore after the company decided to shift its domicile from Singapore to India.
The CEO further added that PhonePe is well positioned in terms of its core payments business, with triple-digit operating and revenue growth. Nigam is confident that PhonePe will definitely go public in India.
Regarding the recent tech IPOs in India, Nigam stated that these companies went public in India when the VC market was at its peak globally. He added that despite significant losses, India’s tech stocks have been less affected compared to their global peers.
However, Nigam praised PhonePe’s rival Paytm, saying, “A big shout-out to Paytm – Paytm’s business looks fundamentally healthier today than it did four quarters ago. Maybe the markets helped the players grow fiscally faster as well.”
While investors have scaled down investments in India this year, Nigam remains optimistic. He believes that the best of Indian startups will find attractive valuations and that new startups will have to move less and less to find VCs to invest in their companies.
There is a clear shift in focus from growth to profitability, with an emphasis on building sustainable business models. For the first time in seven years, founders have shown a greater preference for profitability overgrowth. Nigam advises early-stage startups to be able to say no to investors and not feel bullied to grow at any cost.
PhonePe was founded in August 2016 by Sameer Nigam, Rahul Chari, and Burzin Engineer, as an Indian company offering digital payment and financial services. The company’s headquarters is located in Bengaluru, Karnataka, India. The app, based on the Unified Payments Interface, was launched shortly after its founding.
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