PhonePe Files Draft IPO Papers With Sebi Via Confidential Route: What We Know So Far

Walmart-backed Indian fintech firm PhonePe filed its draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (Sebi) for an initial public offering (IPO). The filing was made via the confidential route, the company’s spokesperson confirmed to Outlook Money via email on September 24.

"PhonePe Limited has filed the pre-filed draft red herring prospectus 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," the spokesperson said.

"We will not be making any further comments at this stage in connection with the offer," the spokesperson added.

Founded by Sameer Nigam and Rahul Chari, and incorporated in December 2012, PhonePe is one of the most widely used app in India for UPI payments. The company launched its most widely-used service, Digital Payments app, in August 2016. It has nearly 600 million registered users, as of December 2024, and works with 40 million merchants. According to its official website, the platform processes more than 310 million online transactions daily.

Over the years, the fintech firm diversified its businesses into insurance broking services, lending services, wealth broking services and a few other verticals.

PhonePe IPO Key Details

PhonePe’s IPO is expected to raise about Rs 12,000 crore, according to a Moneycontrol report, which cited sources.

Kotak Mahindra Capital, Citi, Morgan Stanley, and JP Morgan are the book running lead managers for the IPO. Jefferies, Goldman Sachs, Axis Capital, and JM Financial are also part of the deal as other bankers, the report added.

Shardul Amarchand Mangaldas, Cyril Amarchand Mangaldas, and Trilegal are the legal advisors for the issue, according to the report.

Walmart is the biggest stakeholder in PhonePe. Apart from Walmart, PhonePe’s marquee investors include Tiger Global, Tencent, Qatar Investment Authority, General Atlantic, Microsoft, and Ribbit Capital.

PhonePe Valuation

According to a Bloomberg report, PhonePe is aiming for a $15 billion valuation. The fintech last raised $100 million in December 2023 as part of a $1 billion funding round, which valued the company at $12 billion before the investment.

PhonePe Financial Performance

The fintech platform narrowed its net loss by 13.4 per cent in the previous fiscal year (FY25) to Rs 1,727.4 crore from Rs 1,996.1 crore a year earlier, according to filings with the Registrar of Companies.

Operating revenue rose 40.4 per cent to Rs 7,114.8 crore from Rs 5,064.1 crore in the previous year.

Expenses increased 21.1 per cent to Rs 9,394 crore, mainly due to higher payment processing charges and staff costs. Payment settlement fees jumped 44.7 per cent to Rs 1,688.1 crore, while employee expenses rose 13.6 per cent.