PhonePe targets IPO by March 2027 after UPI MDR clarity

Fintech firm PhonePe is targeting a stock market listing between February and March 2027, Inc42 reported. The company had previously put its IPO plans on hold but is now reviving them following greater clarity on the monetisation of its UPI payment services.

PhonePe aims for a valuation of $10 billion and plans to file updated IPO papers by the end of this year. The clarification around the Merchant Discount Rate (MDR) framework offers the company a clearer path to revenue generation from its UPI services, which have largely been free for merchants.

The Indian government recently introduced a new MDR framework, set to take effect from October 15. Under this framework, UPI transactions for merchants exceeding ₹2,000 will incur a 0.4% MDR. However, person-to-person transactions and payments to small merchants (receiving up to ₹1 Lakh monthly) will remain free.

PhonePe, a major player in India's digital payments landscape, has long sought ways to commercialise its UPI offerings. The new MDR framework provides a more defined structure for this. CEO Sameer Nigam has previously stated that revenue generated from these fees can be reinvested into developing the UPI ecosystem.