India’s digital payments giant PhonePe is gearing up for one of the largest IPOs in Indian fintech history, potentially raising USD 1.5–2 billion (~INR 12,000–16,000 crore). Founded in 2015 by Sameer Nigam, Rahul Chari, and Burzin Engineer, PhonePe has evolved from a simple UPI payments app into a diversified fintech superapp covering payments, investments, insurance, commerce, and credit.
Backed by Walmart, PhonePe IPO will mark a defining moment for India’s financial technology ecosystem — reflecting how homegrown innovation has scaled to dominate the global digital economy.
PhonePe IPO: Company Overview
PhonePe IPO is expected in early 2026, following strong financial performance and regulatory readiness.
The listing is expected to value the company between USD 12–15 billion (~INR 1.05 to 1.32 lakh crore), making it India’s most valuable fintech startup to go public.
PhonePe IPO will likely include both a fresh share sale to raise growth capital and an offer-for-sale (OFS) by existing investors, including Walmart and Flipkart Singapore.
Proceeds are expected to fund:
- Expansion of its lending and insurance verticals
- Development of its Indus Appstore (an alternative to Google Play)
- Broader integration of financial services under one digital ecosystem
PhonePe IPO Snapshot
| Detail | Description |
|---|---|
| Company | PhonePe |
| Industry | Fintech / Digital Payments |
| Founded | 2015 |
| Founders | Sameer Nigam, Rahul Chari, Burzin Engineer |
| Headquarters | Bengaluru |
| PhonePe IPO Size | USD 1.5–2 billion (INR 12,000–16,000 crore) |
| PhonePe IPO Price | NA |
| IPO Type | Fresh Issue + OFS |
| PhonePe IPO Dates | Expected in Early 2026 |
| Lead Bookrunners | Morgan Stanley, Kotak Mahindra Capital, Citi |
| Use of Proceeds | Lending expansion, insurance tech, and digital ecosystem development |
Latest PhonePe IPO News
PhonePe News (October 2025)
General Atlantic invested USD 600 million in PhonePe, doubling its stake to 9% ahead of the fintech’s 2025 IPO. The secondary deal supports employee ESOPs, valuing PhonePe at USD 14.5 billion. Strong financials, market leadership, and diversified services reinforce investor confidence in India’s leading digital finance platform.
PhonePe IPO News (September 2025) — Confidential IPO Filing
On 24 September 2025, PhonePe filed its confidential draft papers (DRHP) with SEBI under the pre-filing route ahead of its much-awaited IPO. According to reports, the Walmart-backed fintech aims to raise around INR 12,000 crore through the public offering. The confidential filing allows PhonePe to fine-tune its IPO structure and valuation strategy based on market conditions before making the details public, giving it greater flexibility and control in an uncertain capital market environment.
On 20 September 20, 2025, PhonePe received the final authorization from the Reserve Bank of India (RBI) to operate as an online payment aggregator. This approval marks a major milestone for the fintech company, allowing it to directly onboard and manage online merchants, offer payment gateway services, and expand its digital payment ecosystem.
PhonePe IPO News (June 2025) — Expanding UPI to Feature Phone Users
PhonePe acquired GSPay Technologies to bring UPI payment services to feature phone users. This strategic move aims to extend digital payment access to millions of non-smartphone users across India, further advancing financial inclusion and the country’s digital transformation journey.
February 2025 — PhonePe IPO Structuring & Valuation Talks
PhonePe initiated discussions with global investment banks Morgan Stanley, Kotak Mahindra Capital, and Citi to finalize its IPO structure.
Valuation estimates range between USD 12–15 billion (~INR 1.05 – 1.31 lakh crore), depending on investor appetite and fintech market trends. The company’s board has reportedly cleared internal restructuring in preparation for the IPO.
PhonePe FY25 — Strong Financial Performance
PhonePe posted a record FY25 revenue of INR 7,115 crore, a 40% YoY jump from INR 5,064 crore in FY24, driven by robust growth in payments and early diversification into financial services. The company achieved positive adjusted EBITDA of INR 1,477 crore (ex-ESOP costs), with break-even and profitability in its core payments business—marking a key milestone toward overall sustainability.
Non-UPI revenue—including insurance, lending distribution, investments, and broking—contributed INR 815 crore (11.5% of total operating revenue), up from ~4% in prior years and highlighting steady diversification progress. Its Total Payment Value (TPV) exceeded INR 150 lakh crore annualized (with ~360 million daily transactions), solidifying its position as India’s largest UPI platform with a 47–48% market share per NPCI data.
2024 — Lending, Wealth & Commerce Expansion
PhonePe entered the lending segment, offering small-ticket merchant and consumer credit through NBFC partners. It launched Share.Market, a retail investment and stockbroking platform integrating mutual funds and ETFs. The company also rolled out the Indus Appstore, India’s first homegrown alternative to Google Play, aimed at empowering local developers.
These moves marked PhonePe’s evolution from payments into a multi-vertical financial ecosystem.
2023 — USD 850 Million Funding & India Re-domiciling
PhonePe raised USD 850 million (~INR 7,400 crore) across multiple tranches from General Atlantic, Tiger Global, and Walmart, valuing it at USD 12 billion (~INR 1.05 lakh crore) — India’s most valuable fintech at the time.
It also completed its re-domiciling from Singapore to India, aligning with Indian regulatory frameworks and paving the way for a domestic IPO. This was hailed as a turning point for India’s startup ecosystem, as PhonePe became one of the first unicorns to “come home” before going public.
2022 — Separation from Flipkart
Walmart finalized the full demerger of PhonePe from Flipkart, allowing both companies to operate independently. The restructuring valued PhonePe at USD 5.5 billion (~INR 48,295 crore). This autonomy allowed PhonePe to sharpen its fintech focus and attract fresh capital.
2019–2021 — Building a Fintech Superapp
During this phase, PhonePe rapidly expanded beyond UPI into insurance, gold savings, mutual funds, and bill payments. It achieved market leadership in UPI transactions, capturing ~48% share. The platform scaled to over 400 million registered users and 30 million merchants, becoming India’s most trusted payments brand.
2016 — Acquisition by Flipkart
Just one year after its launch, PhonePe was acquired by Flipkart, which gave it access to capital, customers, and merchant networks — fueling exponential growth. This move positioned it strategically against Paytm and Google Pay in the digital payments race.
2015 — Founding & UPI First-Mover Advantage
Founded by Sameer Nigam, Rahul Chari, and Burzin Engineer, PhonePe was the first UPI-based payments app in India, launched shortly after UPI’s rollout by NPCI. Its early focus on simplicity, security, and real-time payments helped it gain mass adoption during India’s post-demonetization digital wave.
💹 Financial Highlights
| Metric | FY24 | FY25 |
|---|---|---|
| Revenue from Operations | 5,064 | 7,115 |
| EBITDA Margin | (18) | (6) |
| Net Loss | 1,996 | 1,727 |
| Adjusted EBITDA (excl. ESOP) | 730 | 1,477 |
| Adjusted Profit After Tax | 197 | 630 |
| Active Users | 530 million+ | 650 million+ |
| Merchant Partners | 38 million | 45 million+ |
| UPI Market Share (%) | ~47% | ~48.5% |
| Monthly UPI Transactions | ~8 billion | ~9 billion+ |
| Total Payment Value (TPV) (in INR) | ~12 lakh crore/month | ~15 lakh crore/month |
- FY25 revenue grew 40% year-on-year, driven mainly by payment services (INR 6,300 crore) and insurance & lending (INR 558 crore). EBITDA loss halved to INR 414 crore in FY25, showing stronger cost efficiency.
- The company also reported positive free cash flow and INR 1,202 crore operating cash inflow in FY25.
Market and Usage Insights
- PhonePe processed over 915 crore UPI transactions in August 2025, commanding 46.5–48.5% market share.
- The app reached 650 million registered users and over 45 million merchants, remaining India’s largest UPI platform.
🧩 Key Investors & Shareholding (Pre-IPO)
| Investor | Stake | Notes |
|---|---|---|
| Walmart Inc. | ~80% | Majority shareholder post Flipkart demerger |
| General Atlantic | ~5% | Strategic investor |
| Tiger Global | ~3% | Long-term backer |
| Founders / ESOPs | ~5–7% | Founders and senior employees |
| Other Institutional Holders | ~5% | Minority investors |
🌐 Market & Competitive Landscape
India’s digital payments ecosystem processes over 14 billion UPI transactions monthly (as of 2025). PhonePe leads with ~48% UPI market share, followed by Google Pay (~36%) and Paytm (~12%).
The company’s edge lies in:
- Deep merchant integration
- Comprehensive financial services ecosystem
- AI-led risk assessment for credit products
- Data insights across 500M+ users
Challenges include:
- Regulatory constraints on UPI market dominance
- RBI licensing norms for fintech lending
- Intensifying competition from Paytm’s recovery and Google’s expansion
🔍 Analyst Outlook
Market analysts anticipate the PhonePe IPO could be India’s largest fintech listing, setting benchmarks for future fintech offerings. Its diversified revenue base, profitability in payments, and strong backing from Walmart position it as a blue-chip digital IPO candidate.
If listed at its expected valuation, PhonePe would become India’s second most valuable listed fintech after Paytm — but with a far more stable business model.
Legacy & Road Ahead
From a startup pioneering UPI in 2016 to an INR 1 lakh crore fintech empire, PhonePe’s journey mirrors India’s digital transformation. PhonePe IPO will mark not only the company’s next growth phase but also a maturity milestone for India’s fintech ecosystem — where sustainable, profitable innovation leads the way.
With expansion across payments, lending, and commerce, PhonePe is positioned to shape the next decade of financial inclusion and fintech leadership in India.