PhonePe Plans ₹12,000 Cr IPO at $15 Bn Valuation, 9 Points
📊 Walmart, Tiger Global, Microsoft to Dilute Stake in ₹12,000 Cr PhonePe IPO
1. IPO Details
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PhonePe has filed confidential IPO papers with SEBI, NSE, and BSE.
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Planned raise: ₹12,000 crore ($1.35 billion) via Offer for Sale (OFS).
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Expected stake dilution: ~10%.
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Key selling shareholders:
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Walmart (majority owner)
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Tiger Global
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Microsoft
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2. Investment Banks & Legal Advisors
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Lead I-banks (appointed in Feb 2025):
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Kotak Mahindra Capital
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Citi
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Morgan Stanley
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JP Morgan
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Other i-banks:
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Jefferies
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Goldman Sachs
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Axis Capital
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JM Financial
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Legal advisors:
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Shardul Amarchand Mangaldas
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Cyril Amarchand Mangaldas
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Trilegal
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3. Valuation & Listing Plans
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Target listing valuation: $15 billion (₹1,33,000 crore).
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Strategy: Confidential filing allows flexibility & withdrawal if markets are unfavorable.
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Peer comparison: Paytm’s stock rose 73.43% YoY, boosting investor appetite for fintech IPOs.
4. PhonePe Financial Performance (FY25)
| Financial Metric | FY25 Value | Growth YoY | Notes |
|---|---|---|---|
| Revenue | ₹7,115 crore | +40% | Strong topline growth |
| Free Cash Flow | ₹1,202 crore | Turned Positive | Cash flow positive |
| Adjusted EBITDA | ₹1,477 crore | 2x | Ex-ESOP costs |
| Adjusted PAT | ₹630 crore | +220% | Profit surge |
| Adjusted EBIT | ₹117 crore | First positive | Milestone achievement |
5. PhonePe’s Market Position
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Competes with Google Pay in UPI dominance.
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Core business: Payments.
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Diversification into:
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Loan distribution
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Stock broking
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Insurance, Lending & Wealth products
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6. Scale & Reach (FY24 Data)
| Metric | Value |
|---|---|
| Registered Users | 53 crore |
| Monthly Active Customers | 20 crore |
| Net Payment Devices | 50+ lakh |
| Monthly Transactions | 770+ crore |
| Total Payment Value | ₹10.5 lakh crore |
7. Global Expansion
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Partnerships in 6 countries:
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Singapore
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UAE
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Nepal
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Sri Lanka
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Bhutan
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Mauritius
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Enables UPI payments for Indians abroad.
8. Regulatory & IPO Route
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Confidential pre-filing route introduced by SEBI (Nov 2022).
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Advantages:
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Keeps sensitive details hidden from rivals.
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Flexibility to withdraw IPO without public disclosure.
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Other companies using this route: Tata Capital, Tata Play, Swiggy, Oyo, PhysicsWallah.
9. Investor Base (as of 2025)
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Walmart (majority)
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Tiger Global
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Microsoft
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General Atlantic
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Ribbit Capital
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TVS Capital
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Tencent
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Qatar Investment Authority
📌 Key Takeaway
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PhonePe’s ₹12,000 crore IPO will be India’s next biggest fintech listing, backed by Walmart.
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With 53 crore users, ₹7,115 crore revenue, and $15 bn valuation target, the IPO is set to test investor appetite after Paytm’s stock recovery.
⚠️ Disclaimer
This article is for informational purposes only. It does not constitute investment advice. The Profit India is not responsible for financial decisions based on this content.
