Walmart-backed PhonePe has converted itself to a public entity from a private one, as it looks to launch an initial public offering (IPO) soon, according to filings with the Registrar of Companies.
The document shows that the decision to change the name from PhonePe Private Limited to PhonePe Limited was taken at the extraordinary general meeting held on April 16.
The change has to be approved by the Central Processing Centre under the Ministry of Corporate Affairs by issuing a fresh certificate of incorporation.
This is a necessary legal step for companies looking to list on the bourses. Earlier this week, another fintech firm Razorpay converted to a public company ahead of its IPO.
According to industry sources, PhonePe is aiming to list on the Indian stock exchanges this year only, and is targeting valuation of around $15 billion. Its last-known valuation was around $12 billion.
It has onboarded Kotak Mahindra Capital, JP Morgan, Citi and Morgan Stanley to start the IPO process.
PhonePe shifted its domicile from Singapore to India in December 2022.
In February this year, the unicorn announced that it is starting preparatory steps for a potential public issue. “PhonePe, our fintech business, is making preparations for an IPO in India. Our PhonePe team has long aspired to be a public company and we are excited to be taking these early steps,” said Doug McMillon, CEO of Walmart.
Walmart is the majority shareholder and other investors include Microsoft, General Atlantic, Tiger Global, Ribbit Capital, TVS Capital, Tencent and Qatar Investment Authority.
The Bengaluru-based company is the largest digital payments player in the country, accounting for nearly 50% of all UPI payments.
In FY24, the company reported a 73% year-on-year increase in revenue to Rs 5,064 crore on the back of cost efficiency and product diversification. Its adjusted profit after tax came in at Rs 197 crore, against a loss of Rs 738 crore in the previous year.
Apart from PhonePe and Razorpay, starups like Urban Company, Shiprocket, Lenskart and Pine Labs are also expected to launch their public issues soon.