PhonePe Eyes European Expansion Amid Market Cap Concerns

PhonePe, backed by Walmart, faces challenges in its potential market listing due to market cap constraints. The CEO cited nervousness over a 30% market cap limit proposed by NPCI. Despite these hurdles, the company plans to enter the European market within five years and has recently turned profitable.

PhonePe, a fintech major backed by Walmart, is facing market cap challenges that hinder its potential listing. CEO Sameer Nigam highlighted concerns over the 30% market cap limit proposed by the National Payments Corporation of India (NPCI) during a session at the Global Fintech Fest.

The NPCI, in November 2020, proposed a market cap limit for third-party application providers, initially setting a deadline for December 31, 2022, which has since been extended to December 2024.

Despite these challenges, PhonePe declared it turned profitable before ESOP costs in the last fiscal year, and looks to expand into the European market in the next five years.

(With inputs from agencies.)