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Bottom-Line:Valuation Analysis (All figures in US$, unless otherwise noted)

RapidPhonePe FY24 Financials

Consolidated revenue accelerationof ₹5,064 Cr (+74%US YoY)$612 well outpaces expense growth (+31%)M), driving+73.8% dramatic margin improvement.YoY

Balance-sheetNet conservatismloss narrowed to ₹1,996 Cr (veryUS strong$241 current ratio, modest leverage) funds continued investment while preserving liquidity.M)

Adjusted profitability in FY 24PAT (ex-ESOP) signalsof that₹197 unitCr economics(US are$24 approaching break-even on a cash-profit basis.M)

ContinuedDiscounted focusCash onFlow scaling new financial-services offerings and merchant solutions should drive further margin expansion over FY 25–26.(DCF)

ThisAssumptions:

performance

Revenue profilegrowth: underscores50%→40%→30%→25%→20% why(FY25–FY29)

investors

FCF havemargins valuedramping to 15% by FY29

WACC = 12%, terminal growth = 4%

Implied EV ≈ $3.3 B

Public Comps (EV/Revenue)

One97 Communications (Paytm) EV ≈ ₹425 B / Revenue ₹99.8 B ⇒ 4.3×

Global Fintech median EV/Rev ≈ 5.7× (Q4 2024)

Implied EV range (4.3–5.7×) × PhonePe atFY24 arev substantial⇒ premium$2.6 (B–$3.5 B

Precedent Transactions

General Atlantic growth round: $12 B pre-money invaluation (Jan 2023) despite ongoing net-loss accounting—and why the path to standalone profitability is now clearly in view.

Typical Fintech M&A EV/Rev: 6–8×

Implied EV (6–8×) × FY24 rev ⇒ $3.7 B–$4.9 B