PhonePe gearing up for IPO this year

New Delhi: PhonePe, part of the Walmart Inc-controlled Flipkart group, is considering to raise funds through an initial public offering (IPO) for expanding its financial services portfolio and deepening 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 IPO (Initial Public Offering) process. Also, the company has initiated plans to move its registered holding entity from Singapore to India, underlining its 'made in 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.