Walmart-owned digital payments giant PhonePe has officially taken the first step toward going public by filing its pre-filed draft red herring prospectus (PDRHP) with the Securities and Exchange Board of India (SEBI), along with the BSE and NSE. The filing, done through the confidential pre-filing route, marks a significant milestone in the fintech’s journey from a startup to one of India’s most valuable digital finance companies.
According to sources, PhonePe is expected to raise around ₹11,000–12,000 crore in its initial public offering (IPO), primarily through an offer for sale (OFS) by existing shareholders. A smaller portion of the issue will be a fresh equity offering. However, the company clarified that the PDRHP filing does not guarantee the IPO will proceed.
Restructuring and IPO Preparations
PhonePe has been laying the groundwork for a public listing for several months. It appointed JP Morgan, Citi India, Morgan Stanley, and Kotak Mahindra Capital as merchant bankers earlier this year. In April, the company transitioned from a private entity to a public company, a key requirement for listing.
In 2022, PhonePe made a strategic move by shifting its domicile from Singapore to India, becoming the first major Indian fintech to do so — a process that involved paying nearly ₹8,000 crore in taxes to the Indian government.
Strong Financial Performance in FY25
The company’s financials underline its readiness for the public markets. In FY2024-25, PhonePe’s revenue from operations grew 41% year-on-year to ₹7,148.6 crore, up from ₹5,064.1 crore the previous year. More importantly, its net loss narrowed to ₹1,727.4 crore from ₹1,996.2 crore, signaling a clear path toward profitability.
Diversified Business Beyond Payments
Founded in 2015 by Sameer Nigam, Rahul Chari, and Burzin Engineer, PhonePe has grown beyond its UPI payments origins. It now offers insurance, lending, and wealth management services and has launched platforms like Pincode (a hyperlocal commerce app) and Indus Appstore (an Indian alternative to Google Play).
With a valuation of $12 billion in its last funding round and nearly $1 billion raised from investors like General Atlantic and Tiger Global, PhonePe’s IPO will be one of the most closely watched listings in India’s fintech sector.
