PhonePe Planning IPO , PART OF the Walmart-controlled Flipkart group, is considering to raise funds through an initial public offering for expanding its financial services portfolio and depending its core United payments interface (UPI)-based payments operations, investment banking sources said on Wednesday.
The digital payment company is seeking a valuation of $8-10 billion, they added.
According to the sources, the company will soon engage with bankers and legal consultants to take forward the initial public offering (IPO) process.
Also, the company has initialized plans to move its registered holding entity from Singapore to India’ credentials. PhonePe’s board has already ratified the proposal to move the holding company to India.
The company will list on Indian stock exchanges as opposed to many startups that prefer to incorporate overseas, primarily Singapore or the US, chasing relatively friendlier tax laws and business regulations there.
PhonePe was founded by ex-Flipkart executives Sameer Nigam, Rahul Chari and Burzin Engineer, and was acquired by Flipkart in 2016. In 2018, Flipkart was acquired by Walmart, and PhonePe was part of the transaction as well.
The Company plans to go public once its core businesses turn profitable, which it hopes to achieve by 2023, investment banking sources said.
In addition, Phonepe Plans to raise its workforce stengh to 5, 200 by the end of December to ride on the growing UPI-based transaction in India.
The company has 2,600employees and 2,800 open jobpositions across cities such as Begaluru, pune, Mumbai and Delhi. PhonePe had last raised $700 million in 2020 led by its promoters Flipkart and Walmart at a valuation of $5.5 billion. The digital payment company has raised a total of $1.7 billion if funding over 13 rounds that includes Tiger Global Management and Tencent as investors