Walmart-backed digital payments giant plans domestic listing, signaling confidence in Indian markets and potentially creating ripple effects for Tamil Nadu’s growing fintech hub
CHENNAI, February 26, 2025 – PhonePe, the digital payments behemoth that is part of the Walmart Inc-controlled Flipkart group, is preparing to go public with an initial public offering (IPO) that could value the company at $8-10 billion, according to investment banking sources. The move comes as the company looks to expand its financial services portfolio and strengthen its core United Payments Interface (UPI)-based operations.
Sources close to the matter revealed on Wednesday that PhonePe will soon engage with bankers and legal consultants to advance the IPO process. In a strategic move highlighting its commitment to its Indian origins, the company has also initiated plans to relocate its registered holding entity from Singapore to India, with its board already ratifying the proposal.
Choosing Indian Markets Over Foreign Listings
Unlike many Indian startups that prefer to incorporate overseas—primarily in Singapore or the United States—to benefit from friendlier tax laws and business regulations, PhonePe has chosen to list on Indian stock exchanges. This decision reflects the company’s confidence in India’s capital markets and its commitment to its “made in India” credentials.
Founded by former Flipkart executives Sameer Nigam, Rahul Chari, and Burzin Engineer, PhonePe was acquired by Flipkart in 2016. When Walmart acquired Flipkart in 2018, PhonePe was included in the transaction. The company has set ambitious targets, planning to go public once its core businesses achieve profitability—a milestone it hopes to reach by the end of this year, according to investment banking sources.
To support its rapid growth, PhonePe is on a hiring spree, planning to increase its workforce to 5,200 employees by December 2025. Currently, the company has 2,600 employees and 2,800 open positions across major Indian cities including Bengaluru, Pune, Mumbai, and Delhi, with a growing presence in Chennai’s emerging fintech corridor.
Expanding Beyond UPI Payments
PhonePe last raised $700 million in 2020 in a round led by Flipkart and Walmart at a valuation of $5.5 billion. Overall, the digital payment company has secured a total of $1.7 billion in funding across 13 rounds, with Tiger Global Management and Tencent among its investors.
The company dominates the UPI space with a 47% market share in monthly transactions and has been diversifying its offerings beyond payments. PhonePe has applied for both a mutual fund license and a Non-Banking Financial Company (NBFC) license, signaling its ambitions in the broader financial services sector. Additionally, it has acquired three companies—WealthDesk, OpenQ, and GigIndia—to strengthen its position.
“The planned IPO is a watershed moment not just for PhonePe, but for India’s entire digital payments ecosystem,” said Dr. Rajesh Kumar, Professor of Financial Technology at Anna University, Chennai. “For Tamil Nadu’s growing fintech sector, this offers validation and potentially creates new opportunities for partnerships, talent development, and investment flows.”
Currently, PhonePe holds a mutual fund distribution license and is expanding its wealth management products to include stocks and exchange-traded funds (ETFs). The company recently announced plans to launch UPI SIP (Systematic Investment Plan) for gold investments, allowing users to invest in high-purity 24K gold monthly. The accumulated gold will be stored in insured bank-grade lockers maintained by MMTC-PAMP and SafeGold.
Integration with India’s Open E-Commerce Network
In another significant development, PhonePe is integrating with the Open Network for Digital Commerce (ONDC), India’s indigenously created open-source e-commerce network. Real-time transactions in retail and food delivery have already begun in cities like Shillong and Delhi, with a current focus on retailers and restaurants.
“PhonePe’s integration with ONDC and expansion into financial services represents a natural evolution for the company,” said Sundar Ramaswamy, CEO of TamilPreneurs, a Chennai-based startup accelerator. “Their IPO will likely inspire many Tamil Nadu startups to think bigger and could attract more venture capital to our region’s fintech ecosystem, which has seen remarkable growth in the past three years.”
Implications for Tamil Nadu’s Startup Ecosystem
The IPO announcement comes at a pivotal time for Tamil Nadu’s startup landscape, which has been gaining momentum as a secondary fintech hub after Bengaluru. The state has seen a 35% increase in fintech investments over the past year, with Chennai emerging as a significant talent pool for digital payment expertise.
Industry analysts suggest that PhonePe’s domestic listing could encourage more Tamil Nadu-based startups to consider local IPOs rather than looking abroad for exits. The company’s significant hiring plans are also expected to create opportunities for the state’s technology workforce, particularly those specializing in financial technology, data analytics, and artificial intelligence.
“We’re seeing genuine excitement among Chennai’s fintech community,” added Ramaswamy. “PhonePe’s success story demonstrates that Indian fintech companies can achieve global-scale operations while remaining rooted in the domestic market, which is exactly the model many Tamil Nadu startups aspire to follow.”
As PhonePe prepares for this significant milestone, its journey from a UPI payments app to a diversified financial services platform seeking an $8-10 billion valuation offers a blueprint for ambitious startups across India, particularly in Tamil Nadu’s vibrant technology corridor.
