PhonePe IPO Soon? ESOP Buyback Confirms The News

PhonePe, a leading fintech company, has initiated an Employee Stock Ownership Plan (ESOP) buyback worth INR 800 crore, signaling its intent to go public soon

The buyback program is one of the largest in India's startup ecosystem, potentially involving over 1,000 employees from a workforce of nearly 12,000

ESOP buybacks are often a precursor to IPO filings, providing liquidity to early employees and signaling the company's plans to align its workforce ahead of a public listing

Sources indicate that PhonePe plans to pre-file for its IPO later this month, aiming for a listing by early 2026

The company has enlisted major global investment banks, including Kotak Mahindra, Citigroup, JP Morgan, and Morgan Stanley, to facilitate the IPO process

PhonePe is expected to raise between $12 billion and $1.5 billion, with the IPO structured as a mix of fresh shares and an offer for sale.

PhonePe's valuation is anticipated to be around $7-8 billion during the IPO, reflecting a broader correction in tech valuations, yet it remains a dominant player in the fintech space

The company holds a 465% share in the UPI payments market and has raised nearly $2.3 billion to date from investors like Ribbit Capital and Tiger Global.

PhonePe's IPO is part of a larger trend of Indian startups, such as Pine Labs and Groww, preparing for public listings, marking a significant moment in India's fintech landscape

If successful, PhonePe's IPO will not only benefit investors and employees but also set the stage for a vibrant startup IPO season in India