PhonePe, a major fintech company, said that it had begun preparations for a potential listing in the country more than two years after it reverse-flipped from Singapore.

The announcement comes as the company celebrates a decade of business operations. PhonePe would be the third fintech company to enter the stock market in five years, following Paytm and MobiKwik.

"PhonePe has long aspired to be a public company in India, having been founded here and being a leader in the country's fintech industry. PhonePe redomiciled from Singapore to India in December 2022, and has since established a clear corporate structure with each of its new non-payment businesses as fully-owned subsidiaries," the Bengaluru-based company said in a statement.

PhonePe stated that its "strong top and bottom line growth" across business portfolios makes it an appropriate time for a public listing. The firm's consolidated revenue from operations increased by 73.8 percent to Rs 5,064 crore in FY24, up from Rs 2,914 crore in FY23. It reduced its net loss to Rs 1,996 crore in FY24, from Rs 2,795 crore in FY23.

PhonePe had to pay the Indian government approximately $1 billion in capital gains taxes to complete the domicile shift back to the country.

PhonePe's CEO, Sameer Nigam, stated in August that the National Payments Corporation of India's (NPCI) proposed market share cap on the volume of UPI transactions that a third-party application provider (TPAP) can process was preventing the company from going public.

In December, the apex payments body extended the deadline for implementing the volume cap by two years, bringing much-needed relief to the UPI market leader. PhonePe has 47.67% of the UPI market as of January 2025.

The large user base of over 590 million registered customers contributes to the company's high market share. It operates a payment acceptance network with over 40 million merchants.

IPO LANE

- PhonePe would become the third major fintech in the last five years to seek an IPO.

- The announcement coincides with PhonePe's 10th anniversary of operations.

- The firm's FY24 revenue increased by 73.8% to Rs 5,064 crore, with the net loss narrowing to Rs 1,996 crore.

- PhonePe leads the UPI market with 47.67% share as of January 2025.