PhonePe appoints bankers for IPO, targets $1.5 billion fundraise at $15 billion valuation

Digital payments giant PhonePe has officially begun its journey toward a stock market debut. The company has appointed a group of leading domestic and international investment banks to manage the Initial Public Offering (IPO). These include Kotak Mahindra Capital, JPMorgan Chase, Citigroup, and Morgan Stanley, who will act as lead managers for the issue.

The IPO aims to raise $1.5 billion at a target valuation of up to $15 billion, according to sources familiar with the matter. This move positions PhonePe among the most anticipated tech listings in India’s dynamic startup ecosystem this year.

How PhonePe Plans to Use the IPO Funds

The funds raised through this public issue will be pivotal in advancing PhonePe’s ambitious plans. The company is expected to channel the capital into:

• Scaling its financial services offerings such as insurance, lending, mutual funds, and gold investment.

• Strengthening its existing payments and merchant solutions business.

• Pursuing strategic acquisitions to consolidate its position in India’s fast-evolving fintech sector.

Backing and Market Position

PhonePe, backed by Walmart, is one of India’s largest players in the digital payments space. The platform offers an array of services across:

• Unified Payments Interface (UPI) transactions

• Insurance products

• Mutual fund investments

• Digital gold

• Consumer and merchant lending

Founded in 2015 by Sameer Nigam, Rahul Chari, and Burzin Engineer, PhonePe was acquired by Flipkart in 2016. Following Walmart’s acquisition of Flipkart in 2018, PhonePe became part of the retail giant’s portfolio in India.

PhonePe’s Shift Towards a Public Listing

In May 2025, CEO Sameer Nigam indicated that PhonePe is ready for life as a public company. Speaking to CNBC-TV18, Nigam said,

"Our payments business has achieved market leadership and maturity. We’re prepared to embrace the transparency and accountability that come with being a listed entity."

He emphasized that going public is not only a financial decision but also a responsible action that boosts credibility with investors, regulators, and users. Nigam further added that the company is looking to play a larger role in India’s digital ecosystem by diversifying into new areas of business.

Key Milestones Ahead of IPO

In 2023, PhonePe undertook several structural changes to pave the way for a domestic IPO:

• The company completed a full demerger from Flipkart.

• It shifted its domicile from Singapore to India, aligning itself with local regulatory frameworks for a domestic listing.

These moves position PhonePe to list on Indian stock exchanges, making it a highly anticipated tech IPO in the country.

Strong Investor Backing

To date, PhonePe has raised over $1 billion in funding, with a valuation of around $12 billion in its latest funding round. Prominent investors include:

• Walmart

• General Atlantic

• Ribbit Capital

• Tiger Global

• TVS Capital Funds

These backers have supported PhonePe through various stages of its growth, and the IPO will further solidify its capital base for future expansion.

Flipkart IPO Also on the Horizon

PhonePe’s move comes at a time when Flipkart is also preparing for its IPO. Flipkart has completed its own Singapore-to-India domicile shift, positioning itself for listing on Indian bourses later this year.

Both listings are expected to draw strong interest from domestic and global investors eager to participate in India’s growing digital economy.

What’s Next for PhonePe?

PhonePe’s IPO is set to be one of the most closely watched listings of 2025, with high investor interest in fintech and digital payments companies. The company’s solid user base, robust financial services portfolio, and growth potential make it an attractive proposition in India’s thriving startup landscape.