In the rapidly evolving digital payments landscape of India, PhonePe has emerged as a significant player. Launched in 2015, the company has been at the forefront of the country’s digital revolution, offering a range of services from money transfers to online bill payments, recharges, and even investments.
As the digital payments industry continues to grow, PhonePe’s potential plans for an Initial Public Offering (IPO) have caught the attention of investors. In this article, we delve deeper into the journey of PhonePe, its fundamentals, and how you might be able to invest in its growth story.
PhonePe Company History
PhonePe, a brainchild of Sameer Nigam, Rahul Chari, and Burzin Engineer, was founded with a vision to make digital payments easy and universally accessible in India. Acquired by Flipkart in 2016, PhonePe got a significant boost when Walmart, the global retail giant, bought a majority stake in Flipkart in 2018.
Today, PhonePe stands as one of the largest digital payment platforms in India, boasting over 46.5 registered users. The platform has not only simplified peer-to-peer transactions but has also made it easier for millions of merchants across the country to accept digital payments, thereby contributing to the Indian government’s vision of a digital economy.
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How To Buy PhonePe Shares
As of now, PhonePe is not a publicly listed company, which means you cannot currently buy PhonePe shares or check the PhonePe share price. However, this scenario may change soon. Walmart CEO Doug McMillon recently hinted at the possibility of PhonePe going public in India. However, the company has declared no concrete plans for such a listing. But when they do go public, you will have the opportunity to buy PhonePe shares and check the PhonePe share price.
PhonePe Fundamentals
Here is a financial snapshot of the company.
| Particulars | FY2020 | FY2021 | FY2022 |
| Revenue | 371.8 | 689.6 | 1,646.3 |
| EBITDA | (1,743.2) | (1,631.2) | (1,857.2) |
| EBITDA Margin | -468.9% | -236.5% | -112.8% |
| Net Profits | (1,830.2) | (1,765.4) | (2,061.4) |
As the table depicts, the company’s revenue has seen a sharp uptrend. However, like many tech startups, PhonePe is not yet profitable. The company is bleeding money but has deep pockets thanks to its backers like Walmart. The company’s management is hopeful of turning EBITDA positive in FY25.
Factors Affecting PhonePe Performance
Several factors can impact PhonePe’s performance:
- Competition: The digital payments space in India is highly competitive with players like Paytm, Google Pay, and Amazon Pay. Any changes in market dynamics could impact PhonePe’s market share and financial performance.
- Regulatory changes: The digital payments industry in India is heavily regulated. Changes in regulations, such as those related to data localization and storage, can significantly impact PhonePe’s operations.
- Technological advancements: The digital payments industry is technology-driven. PhonePe’s ability to innovate and stay ahead of the curve can significantly impact its market position and growth.
- Consumer behaviour: As a consumer-facing company, changes in consumer behaviour and preferences can affect PhonePe’s performance. The company’s ability to understand and adapt to these changes is crucial for its success.
Alternative Ideas: PhonePe Competitors
If you’re interested in investing in the digital payments industry, you might consider PhonePe’s competitors. Paytm, India’s largest digital payments company, went public in November 2021. While its market debut and the subsequent run on the bourses were not very impressive, the stock has seen a strong recovery in 2023. However, apart from Paytm other competitors such as Google Pay, and Amazon Pay are not listed on the exchanges.
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