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ValuationM&A AnalysisPrecedents PayU → BillDesk (AllAug figures2021) Prosus-backed PayU agreed to acquire BillDesk—India’s oldest large-scale payments processor—for US $4.7 billion, creating one of the world’s largest digital-payments platforms outside China corporate.payu.in .

PayU → Citrus Pay (Sep 2016) To bulk up its India business early on, PayU bought Citrus Pay for US $130 million, marking then the largest Indian fintech cash-deal and accelerating its merchant gateway capabilities corporate.payu.in .

Axis Bank → Citibank India Consumer (Mar 2023) Axis Bank paid ₹11,603 Crore (~US $1.4 billion) to acquire Citibank’s retail banking, credit cards and wealth-management arms, transferring ~3,200 employees and 1.8 million card accounts The Economic Times ETCFO.com .

Walmart → Flipkart (May 2018) Walmart’s US $16 billion takeover of Flipkart (which had already absorbed PhonePe in US$,2016) unlessremains otherwisethe noted)single largest e-commerce deal globally, and underwrote major fintech spin-outs across the group The Economic Times .

PhonePe FY24→ FinancialsWealthDesk & OpenQ (May 2022) PhonePe paid US $75 million to acquire WealthDesk and OpenQ—expanding from pure payments into wealth-management distribution Entrackr .

ConsolidatedPhonePe revenue→ GigIndia (Mar 2022) Acquired GigIndia (network of ₹5,0641.5 Crmillion (USfreelance $612“micro-entrepreneurs”) M),to +73.8%bolster YoYits merchant-onboarding and distribution reach; terms undisclosed PhonePe .

NetPhonePe loss→ narrowed to ₹1,996 CrOSLabs (USIndus $241OS M)parent) (Feb 2022) After protracted negotiations, PhonePe bought OSLabs—owner of the multilingual Indus Appstore—cementing its “super-app” strategy; price undisclosed Inc42 Media .

AdjustedRazorpay PAT→ Thirdwatch (ex-ESOP)Nov 2018) Razorpay’s first acquisition of ₹197Chennai-based CrThirdwatch (USfraud-detection $24AI) M)set the stage for advanced risk-management services; financial terms not publicly disclosed Razorpay .

DiscountedFunding Cash Flow (DCF)

Assumptions:

Revenue growth: 50%→40%→30%→25%→20% (FY25–FY29)

FCF margins ramping 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×) ×Precedents PhonePe FY24Series rev ⇒ $2.6 B–$3.5 B

Precedent Transactions

General Atlantic growth round: $12 B pre-money valuationD (Jan 2023) General Atlantic led US $350 million at a US $12 billion pre-money valuation, validating PhonePe’s pivot into financial services beyond UPI General Atlantic .

TypicalCRED FintechSeries M&AF EV/Rev:(Jul 6–8×2024) CRED raised ₹1.97 lakh Crore (~US $235 million) in its latest round, bringing total funding to US $867 million across 10 rounds; backers include GIC, Tiger Global and Dragoneer Tracxn .

ImpliedRazorpay EVSeries F (6–8×)Dec ×2021) FY24Razorpay revsecured ⇒US $3.7375 B–million at a US $7.5 billion valuation, co-led by Lone Pine, Alkeon and TCV, making it India’s highest-valued privately held fintech at the time Razorpay Moneycontrol .

BharatPe Funding (2023) BharatPe has raised US $424.2 million over 8 rounds, most recently valued at US $2.75 billion; marquee backers include Sequoia, Coatue and Ribbit Capital The Business Rule .

Pine Labs Re-valuation (Dec 2023) Baron Funds re-marked Pine Labs at US $5.8 billion, while Invesco had reported a US $4.98 Bbillion valuation, underscoring market confidence in its POS and lending fintech suite The Economic Times .

MobiKwik Latest Round (Mar 2024) MobiKwik’s 24th funding round raised US $6 million, lifting total capital to US $284 million; investors include ADIA and American Express Ventures Tracxn .