'Public Ltd' tag: PhonePe, Razorpay closer to IPOs

BENGALURU: Fintech unicorns PhonePe and Razorpay have transitioned into public limited companies, signalling a step forward in their long-term plans to go public in India.

The recent regulatory filings showed that PhonePe approved its conversion on April 3. The process includes changing the company's name from PhonePe Private Limited to PhonePe Limited.

Razorpay, also based in Bengaluru, confirmed its transition to a public structure, relating to its efforts to re-domicile from the United States to India. According to a company spokesperson, the move begins the process of public company compliance well in advance of its anticipated IPO in about two years, ensuring timely adoption of governance protocols. Both companies are preparing to access Indian capital markets.

The prospect of a PhonePe listing was first confirmed by Walmart CEO Doug McMillon in Feb, without specifics on timing. Razorpay is anticipated to target an IPO between 2026 and 2027 financial years, following the completion of regulatory requirements and the amalgamation of its US and Indian entities. Previously, PhonePe's IPO prospects were clouded by regulatory issues concerning UPI market-share limits. The National Payments Corporation of India's recent extension of the deadline to cap individual app market share at 30% grants PhonePe additional time to scale up before listing. At present, PhonePe accounts for almost 48% of UPI volumes in India.

In FY24, PhonePe's operating revenue rose 74% to Rs 5,064 crore, and losses narrowed to Rs 1,996 crore. Razorpay recorded Rs 2,068 crore in revenue and a profit of Rs 35 crore in the same period. Other fintech companies like Paytm and MobiKwik are already listed on Indian exchanges, while Pine Labs and PayU are also planning IPOs in the coming year.



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