PhonePe, backed by Walmart, has filed confidential papers for a ₹12,000 crore ($1.35 billion) IPO. The fintech giant reported narrower losses and rising revenues in FY25, strengthening its market position ahead of the listing.
PhonePe Gears Up for Landmark IPO
Walmart-backed fintech giant PhonePe has taken a major step toward its long-awaited stock market debut. According to reports, the company has filed draft papers with the Securities and Exchange Board of India (SEBI) via the confidential pre-filing route, paving the way for an Initial Public Offering (IPO) worth around ₹12,000 crore ($1.35 billion).
This confidential filing process allows the company to keep details of its Draft Red Herring Prospectus (DRHP) away from the public eye until it chooses to go ahead with the listing. Importantly, filing under this route does not obligate PhonePe to proceed with the IPO immediately.
Stronger Financials Ahead of IPO
In the run-up to the IPO move, PhonePe reported improved financial performance for FY25. The company posted a net loss of ₹1,720 crore ($194.78 million), marking a reduction from the ₹1,996 crore loss in FY24.
Revenue from operations surged 40% year-on-year, reaching ₹7,115 crore, highlighting the fintech firm’s growing dominance in India’s digital payments ecosystem. The narrowing losses and rising revenues are expected to boost investor sentiment ahead of the public offering.
PhonePe’s Expanding Ecosystem
With more than 600 million registered users and support for 40 million merchants, PhonePe is one of India’s most widely used digital payment platforms powered by Unified Payments Interface (UPI). The app currently handles over 310 million transactions daily, reflecting its scale and reliability.
Earlier this year, the company received final authorisation from the Reserve Bank of India (RBI) to operate as an online payment aggregator. This regulatory approval enables PhonePe to expand deeper into India’s small and medium enterprises (SME) segment, which remains a key focus area for growth.
Commenting on the development, Yuvraj Singh Shekhawat, CBO – Merchant Business at PhonePe, said:
“With this authorisation, PhonePe is well-positioned to accelerate financial inclusion by providing accessible payment solutions to businesses that were previously underserved, particularly in the SME segment.”
Why the IPO Matters
PhonePe’s IPO is expected to be one of the largest fintech listings in India, potentially reshaping investor sentiment in the digital payments sector. Backed by global retail giant Walmart, which holds a majority stake, PhonePe’s listing could strengthen India’s standing as a hub for fintech innovation and investment.
The IPO also comes at a time when India’s UPI ecosystem is seeing exponential growth, with digital transactions becoming a backbone of the country’s financial infrastructure.
Key Highlights
- IPO Size: ₹12,000 crore ($1.35 billion)
- Filing Route: Confidential pre-filing with SEBI
- FY25 Financials: Net loss of ₹1,720 crore vs ₹1,996 crore in FY24
- Revenue Growth: 40% rise to ₹7,115 crore
- User Base: Over 600 million registered users, 40 million merchants
- Daily Transactions: More than 310 million
- RBI Nod: Final approval to operate as online payment aggregator
PhonePe’s confidential IPO filing marks a defining moment for India’s fintech sector. With improving financials, a vast user base, and strong regulatory backing, the company is positioning itself for a high-impact stock market debut.
While the timeline for the IPO remains undisclosed, investor interest is expected to be strong, given PhonePe’s dominance in digital payments and the growth potential of India’s fintech landscape.
Disclaimer: This article is for informational purposes only. The views expressed are based on publicly available reports. Readers are advised to consult certified financial experts before making any investment decisions, as market conditions can change rapidly.