Walmart-backed fintech major PhonePe on Wednesday said that over-capitalisation is a challenge for the company’s potential listing and it cannot go public based on current numbers and market share.
He also said the company plans to enter the European market within the next five years.
It is worth mentioning here that the National Payments Corporation of India (NPCI) proposed a 30 percent market capitalization cap for third-party application providers (TPAPs) in November 2020.
While the policy had an original deadline of December 31, 2022, it has been extended to December 2024. The NPCI is expected to announce a final decision by the end of 2024.
“As far as IPO is concerned, over-market cap is definitely an issue for us. I am nervous about entering a market where there is a 30 per cent market cap lurking or approaching,” PhonePe CEO Sameer Nigam said at a session during the Global Fintech Fest here on Wednesday.
“I don’t want to go public based on current numbers and market share until I can look you in the eye and say: buy my shares. This company can grow from here.”
This comes after PhonePe earlier this week said it had made profit before ESOP costs during the previous financial year. The company reportedly posted an adjusted profit after tax (PAT) of Rs 197 crore in FY24 as against an adjusted loss after tax of Rs 738 crore in the financial year ended March 2023.
Looking ahead, he said, PhonePe is looking to enter the European market within the next five years.
Stating that all businesses are big opportunities for the company, Nigam said PhonePe will delve much deeper into the businesses it has launched.
“We are already seeing some dividends,” he added.
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