PhonePe, India’s leading digital payments platform backed by Walmart, has confidentially filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), signaling its intent to go public. The company aims to raise approximately ₹12,000 crore (about $1.35 billion) through the Initial Public Offering (IPO), targeting a valuation of around $15 billion. The listing is anticipated by mid-2026, marking a significant milestone in PhonePe’s journey.
Strategic Move Ahead of IPO
Opting for the confidential filing route allows PhonePe to keep its financial and strategic details private until the public issue is launched, providing flexibility during the IPO process. While the filing indicates serious intent, it does not guarantee that the company will proceed with the IPO. The move aligns with SEBI’s regulations under Chapter IIA of the Issue of Capital and Disclosure Requirements (ICDR) norms, which permits such confidential filings.
Financial Performance and Growth
In the fiscal year 2024-25, PhonePe reported a net loss of ₹1,720 crore, a 13.4% reduction from the previous year’s loss of ₹1,996 crore. Revenue from operations increased by 40.4% year-over-year, reaching ₹7,115 crore. The company also achieved a significant milestone by becoming free cash flow positive, generating ₹1,202 crore in cash flow from operations during the financial year.
Market Position and User Base
Founded in 2015, PhonePe has become India’s most widely used digital payments app, powered by the Unified Payments Interface (UPI). The platform boasts over 600 million registered users and supports more than 40 million merchants. In August 2025, PhonePe processed 9.15 billion of the 20 billion UPI transactions, capturing over 45% of the market share by volume.
Regulatory Approvals
Earlier this year, PhonePe received final authorization from the Reserve Bank of India (RBI) to operate as an online payment aggregator. This approval enables the company to expand its services to online merchants, particularly small and medium enterprises (SMEs), thereby enhancing its role in India’s digital payments ecosystem.
Stakeholder Participation
Existing investors, including Walmart, Microsoft, and Tiger Global, are expected to offload part of their shareholding during the IPO. However, Walmart is anticipated to retain its majority stake in the company. The offer-for-sale (OFS) component of the IPO will involve a combined dilution of around 10% of the company’s equity, with participation from these investors.
Industry Context
PhonePe’s IPO plans come at a time when India’s primary markets are experiencing significant activity. In 2024, fundraising in the Indian primary markets surpassed a record $20 billion, with companies like LG Electronics’ Indian unit and PayPal-backed Pine Labs planning to tap the markets. The fintech sector has been a significant contributor to this growth, with companies like PhonePe leading the charge in digital financial services.
Conclusion
PhonePe’s confidential filing for an IPO represents a pivotal moment in India’s fintech landscape. With its strong market position, growing user base, and improved financial performance, the company is poised to make a significant impact in the Indian stock market. As the IPO process unfolds, stakeholders and investors will be closely monitoring developments to assess the potential implications for the fintech sector and the broader economy.
Disclaimer: This article is based on information available from public sources. It has not been reported by EQMint journalists. EQMint has compiled and presented the content for informational purposes only and does not guarantee its accuracy or completeness. Readers are advised to verify details independently before relying on them..
