“No Idea,” Says PhonePe Founder After Report Says IPO Soon

Just hours after reports came out that digital payment company PhonePe is considering raising funds through an initial public offer (IPO), its Founder and CEO Samir Nigam expressed surprise at the development, saying he had not idea about it.

“This is cute. I had no idea my own company is filing an IPO. Perhaps PTI and their ‘investment banker’ buddies can do the IPO filings and roadshows for us too?” he tweeted.

“Let me know if I can be of any help in the process,” he further added cryptically.

The tweet can be read here.

This is cute. I had no idea my own company is filing an IPO. Perhaps PTI and their ‘investment banker’ buddies can do the IPO filings and roadshows for us too? ????

Let me know if I can be of any help in the process ????https://t.co/wNBHmvzYfa

— Sameer.Nigam (@_sameernigam) June 15, 2022

Earlier news agency PTI, (of which Mr Nigam has made a mention of in the tweet), reported that PhonePe is aiming to expand its financial services portfolio and deepening its core United Payments Interface (UPI)-based payments operations, citing investment banking sources.

The digital payment company is seeking a valuation of $8-10 billion, it further reported.

According to the sources, the company will soon engage with bankers and legal consultants to take forward the IPO 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 PTI report said.

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, the agency report had further said.

PhonePe was founded by ex-Flipkart executives Sameer Nigam, Rahul Chari and Burzin Engineer, and was acquired by Flipkart in 2016. In 2018 Flipkart was acquired by Walmart, and PhonePe was part of the transaction as well.

The company plans to go public once its core businesses turn profitable, which it hopes to achieve by 2023, PTI reported quoting investment banking sources.