PhonePe Seems to Be in No Hurry to Go Public

Unlike most of its market peers, PhonePe seems to be in no hurry to open its shares for public subscription. As per PhonePe’s CEO, this company has tapped into the basics of financial services and is looking forward to grasping other verticals including, the insurance sector. The CEO further added that the company would initiate the public offer process as and when it deems suitable.

Let’s find out PhonePe’s immediate goals and plans regarding IPO.

More on the Prospective IPO – In Brief

PhonePe operates in a highly regulated sector. This digital payment and financial services company plans to navigate through major financial verticals and was expecting to list soon.

The company spokesperson also added that besides the Government factor, PhonePe has no other motive to plan and execute a public offer. Accordingly, PhonePe refrained from hinting at a tentative IPO schedule. Currently, the company is more focused on expanding its business and boosting its verticals.

PhonePe’s Market Presence

PhonePe has managed to get over 300 million users in June 2021. Accordingly, over the years, this digital payment and financial services company has witnessed significant growth in its insurance policies and mutual fund offerings.

In this June quarter, PhonePe managed to carry out 394.13 crore transactions across wallets, UPI, and cards. The aggregate value of the transaction stood at Rs. 7.47 lakh crores, and the average transaction value for this Q2 was Rs. 1,897.

Here’s a quick break-up of PhonePe transactions for June 2021

• Peer-to-peer payments – 174.42 crores
• Merchant payments – 149.96 crores
• Bill payments and recharge – 68.5 crores
• Other financial services – 33.97 lakhs

Current and Future Plans: At a Glance

PhonePe Pulse, an initiative of this digital payment company, is essentially an interactive website rich in data and providing insights on new digital trends and payments. Its latest Pulse Report highlighted the evolution of digital transactions in the last 5 years and showcased over 2,000 crore transactions on an interactive map. Such an innovation proves valuable for different entities and stakeholders.

For instance, the curated information tends to come in handy for policymakers, industry analysts, regulatory bodies, merchant partners, startups, and academic institutions, among others. The curated data allows partners to analyse consumer and merchant behaviour and helps identify lucrative growth opportunities.

Currently, PhonePe is gearing up to enter the B2B aggregator services. Additionally, it has plans in tow to expand its business verticals and strengthen its current business model.

Final Takeaway

The market is cyclical. However, companies with a robust business model and market standing will always manage to garner attention, regardless of the market situation.

Based on this thought, PhonePe’s CEO maintains a positive outlook towards launching its IPO later in the future. Indeed, the thriving digital payment and financial services segment has gained significant traction in India. Moreover, with players like PhonePe in business, this sector looks significantly lucrative for investors.

Frequently Asked Questions

1. Who are the founders of PhonePe?

Rahul Chari, Burzin Engineer, and Sameer Nigam are the founders of PhonePe.

2. When was the latest round of funding received by PhonePe?

PhonePe received the latest round of funding on 18 August 2021 of $350 million.

3. Who are the lead investors of PhonePe?

Flipkart and Walmart are the lead investors of PhonePe.