India, Sept. 24 -- In the run-up to its $1.2-1.5 Bn public listing early next year, PhonePe is busy resolving its biggest challenge: wafer-thin margins in its core payments business and the need to build a strong bottomline and a safety net of profits.

The Walmart-owned fintech major, which commands more than 46% of the UPI market, is eyeing a listing at a $12-15 Bn valuation - a whopping 9-23x revenue multiple - in the IPO. More details will be clear when PhonePe's IPO filing is approved after its confidential filing earlier today.

The company's attempts at addressing the overdependence on UPI are clearly visible in its FY25 numbers. It reported a 40.4% on-year surge in revenue to INR 7,114 Cr, but the contribution from the payments bu...