Walmart-owned digital payments firm PhonePe has moved one step closer to going public. The company has filed draft IPO papers through the confidential pre-filing route to raise about Rs 12,000 crore (~ $1.3 billion) via an initial public offer, according to a Moneycontrol report.
The report further stated that PhonePe’s proposed IPO will consist solely of an offer for sale (OFS) component, with the fintech company aiming for a valuation of around $15 billion. In 2021, the company raised $450 million in a funding round, led by General Atlantic, at a valuation of $12 billion.
Without sharing any details, a PhonePe spokesperson confirmed the company’s IPO plans with MediaNama, saying, “PhonePe Limited has pre-filed draft red herring prospectus (DRHP) with SEBI and the stock exchanges, under Chapter IIA of the SEBI ICDR Regulations in relation to the proposed initial public offering of its equity shares on the main board of the stock exchanges.”
Founded in 2012 by Sameer Nigam, Rahul Chari and Burzin Engineer, PhonePe is a full-stack financial services platform offering Unified Payments Interface (UPI), loan distribution, insurance and stock broking. It also operates a hyperlocal e-commerce platform, Pincode, and an Android app store, Indus. Earlier in September, the company received the final approval from the Reserve Bank of India (RBI) to operate as an online payment aggregator.
PhonePe is backed by the likes of Walmart, Microsoft and Tiger Global—all of which are expected to dilute their shareholding in the company via the OFS. If the listing plans fructify, it could be one of the largest tech IPOs globally in recent years.
The prospects for PhonePe’s IPO look good—especially given that rival Paytm’s stock has climbed over 69% in the last year. Notably, PhonePe continues to maintain its dominance in India’s Unified Payments Interface (UPI) ecosystem with a market share of nearly 46% as of August 31, 2025, according to data from the National Payments Corporation of India (NPCI).
In Focus: The Financial Health of PhonePe
Although the fintech company has set the stage for its mega IPO, it is yet to crack the profitability puzzle. PhonePe continued to bleed in the financial year ended March 2025, posting a consolidated net loss of Rs 1,727.4 crore, down 14% from Rs 1996.2 crore in FY24.
PhonePe, which has been diversifying into loan distribution, insurance and stock broking, saw revenue from its non-payment businesses surge dramatically—albeit at a much smaller scale—in FY25.
However, this growth came at a cost. While revenue from operations rose 40% year-on-year to Rs 7,114.9 crore in FY25 from Rs 5,064.1 crore in the preceding fiscal year, the contribution from its core payments business declined to 88.5%.
This, then, begs a critical question: Is UPI dominance alone enough for PhonePe to move the needle in the direction of profitability? Especially when payment aggregators,…
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