Indian fintech giants PhonePe and Razorpay have taken major strides toward launching their much-anticipated Initial Public Offerings (IPOs) by transitioning into 'public limited' companies—a strategic move that aligns with their long-term listing ambitions. This shift in corporate structure marks a crucial milestone in their journey toward becoming publicly traded entities.

PhonePe, which is backed by retail giant Walmart, approved its conversion from a private to a public limited company on April 3. The rebranding of the entity from PhonePe Private Limited to PhonePe Limited is currently pending shareholder approval and clearance from the Ministry of Corporate Affairs. This move positions PhonePe more favorably within India’s regulatory landscape as it prepares for an eventual public listing.

Similarly, Bengaluru-based Razorpay has confirmed its transition to a public limited structure as part of a larger strategy to re-domicile from the United States back to India. This step is crucial for ensuring compliance with domestic regulatory norms ahead of its targeted IPO window between FY26 and FY27. Re-domiciling is seen as a key requirement for Indian startups planning to list on local exchanges.

PhonePe continues to dominate India’s UPI ecosystem, accounting for nearly 48% of the total volume. The National Payments Corporation of India (NPCI) recently extended the deadline to cap individual app market shares at 30%, providing PhonePe additional breathing room to scale operations before its market debut.

Financially, both companies have demonstrated strong performance. In FY24, PhonePe’s operating revenue surged 74% to ₹5,064 crore, with a narrowing loss of ₹1,996 crore. Meanwhile, Razorpay posted ₹2,068 crore in revenue and reported a net profit of ₹35 crore, reinforcing investor confidence in its growth potential.

These developments reflect a broader trend among Indian startups to restructure their entities in alignment with Indian regulations. With fintech companies like Paytm and MobiKwik already listed, and others such as Pine Labs and PayU preparing for IPOs, the stage is set for a new wave of tech listings that could reshape India’s public markets. PhonePe and Razorpay are now well-positioned to lead this charge.