PhonePe IPO

PhonePe IPO News

• 28 April 2026: PhonePe crossed 50 million lifetime registered merchants on its platform, with its merchant network spread across more than 98% of India's postal codes.

• 16 March 2026: PhonePe put its IPO plans on hold as the Iran war rattled global stock markets. CEO Sameer Nigam reiterated the company's commitment to a public listing in India despite the volatile conditions.

• 4 March 2026: Reuters reported that PhonePe was targeting a valuation of $9 billion to $10.5 billion for its IPO, with plans to raise close to $900 million, possibly stretching to $1.05 billion. The listing was expected to become India's second-largest fintech IPO after Paytm.

• 21 January 2026: Walmart announced plans to reduce its stake in PhonePe by around 12% through the IPO, while investors, including Microsoft and Tiger Global, planned complete exits.

• 21 January 2026: PhonePe filed its Updated Draft Red Herring Prospectus (UDRHP-I) with SEBI. The PhonePe IPO is structured entirely as an Offer for Sale (OFS) of up to 5.06 crore equity shares with a face value of ₹1 each, with no fresh issue component. Promoter WM Digital Commerce Holdings Pte. Ltd (Walmart's subsidiary) will sell 4.59 crore shares, while Tiger Global and Microsoft will offload their entire holdings of 10.39 lakh and 36.78 lakh shares respectively. Book Running Lead Managers include Kotak Mahindra Capital, JP Morgan India, Citigroup Global Markets India, Morgan Stanley India, Axis Capital, and Goldman Sachs.

• 20 January 2026: SEBI issued its observation letter granting formal approval for the PhonePe IPO. The company was expected to raise around ₹12,000 crore at a valuation of nearly $15 billion through the offering.

• 05 September 2025: Co-founders Sameer Nigam and Rahul Chari sold shares worth ₹3,937.32 crore (around $430 million) to General Atlantic Singapore PPIL Pte. Ltd ahead of the planned IPO, through two share purchase agreements signed on the same date. Each founder sold 84.2 lakh shares at ₹2,338.60 per share, netting ₹1,968.66 crore each. The sale was linked to tax obligations arising from ESOP exercises, with proceeds used to settle these liabilities on behalf of the founders. The transaction took General Atlantic's stake in PhonePe to 8.9%.

• 16 April 2025: PhonePe's members approved a name change from PhonePe Private Limited to PhonePe Limited at an Extraordinary General Meeting, completing its conversion to a public limited company - a statutory requirement under the Companies Act, 2013 ahead of a BSE and NSE listing. The board had passed the resolution approving the conversion on 03-04-2025

About PhonePe IPO

The PhonePe IPO opens on TBA and closes on TBA. The allotment of shares will take place on TBA. The credit of shares to the demat account will take place on TBA. The initiation of refunds will take place on TBA. The listing of shares will take place on TBA.

The offer consists of an offer for sale component. The offer for sale portion includes 5,06,60,446 shares of ₹1 (aggregating up to ₹[TBA] crores). The total number of shares is 5,06,60,446 and the aggregate amount is yet to be finalised.

PhonePe IPO’s price band is set at TBA to TBA per share. The lot size for an application is TBA. The minimum amount of investment required by a retail investor is ₹TBA (TBA shares) (based on upper price). The minimum lot size investment for HNI is TBA.

PhonePe is a technology company that is building digital platforms for population-scale adoption and powering an ecosystem of apps across Payments services, Digital Distribution Services and Financial Services. Through their digital platforms, they strive to unlock the flow of funds and ability to access goods and services for their users.

Objectives of PhonePe IPO

• Achieve the benefits of listing the equity shares on the Stock Exchanges.
  
• Carry out the offer for sale of up to 50,660,446 equity shares of face value of ₹1 each aggregating to ₹[TBA] crores by the selling shareholders.
  
• Further, the company expects that the proposed listing of its equity shares will enhance their visibility and brand image as well as provide a public market for the equity shares in India.
  

Industry Outlook

India’s digital payments ecosystem has grown at a remarkable pace, led by UPI, supportive policies, a digital public-private collaboration, and innovations in the fintech space. Financial inclusion, user-friendly platforms, and government incentives have driven consumer and merchant payments adoption. While UPI remains the dominant mode of digital payments, other instruments such as wallets and credit cards, particularly RuPay credit cards are expected to witness growth going forward. With both wallets and RuPay credit cards now interoperable on the UPI platform, UPI has effectively become the foundational ecosystem, enabling the distribution and adoption of these instruments at scale. UPI is becoming the digital payment rails of the country. UPI has become a household phenomenon by powering payments for millions of users in use cases like money transfers, utility payments, offline and online merchant payments. As more consumers embrace digital payments, UPI’s growth is likely to be fuelled by user-friendly innovations like UPI Circle, Credit cards on UPI, and increasing cross-border use cases. UPI adoption is projected to accelerate further, particularly across Tier 2+ cities, fuelled by the growing penetration of digital services such as e-commerce, food delivery, quick commerce, travel, etc. As a result, Tier 2 cities are projected to contribute 5% of UPI’s consumer TPV by Fiscal Year 2030.

About PhonePe

PhonePe is a technology company that is building digital platforms for population-scale adoption and powering an ecosystem of apps across Payments services, Digital Distribution Services and Financial Services. Through their digital platforms, they strive to unlock the flow of funds and ability to access goods and services for their users. They are India’s largest digital payments platform, with sustained leadership in market share from December 2020 to September 2025 in terms of the number of transactions and total payments value (“TPV”) for customer-initiated UPI transactions, as per NPCI data, according to the Redseer Report.

They offer products and services through multiple digital platforms that, together, enable any Indian with access to a mobile phone to “send, spend, manage, and grow” money. These offerings are provided through the PhonePe Platform (PhonePe Consumer app and the PhonePe Business app), Share.Market and Indus Appstore. Their products and services are developed to address large markets, as well as Tier-2+ cities where Financial Services are most underpenetrated and have substantial TAM for Financial Services, according to the Redseer Report.

Strengths of PhonePe

• Long-term and strategic approach to building new businesses.
• Highly tenured leadership team with strong focus on organisational culture and governance.
• Cutting-edge technology and intellectual property stack.
• Trusted brand across the length and breadth of India.
• Market leadership in a high-frequency payments business.
• Strong operating model combining scale, growth, diversification, and financial performance.

Risks of PhonePe

• They have a history of net losses and negative cash flows from operating activities.
• Any disruption in their Consumer Payments offering could adversely affect their business, financial condition, results of operations and cash flows.
• They are dependent on the three sponsor PSP banks, namely Yes Bank Limited, Axis Bank Limited, and ICICI Bank Limited.
• Any downturn in customers’ willingness to use their payments services could have a material adverse impact on their business, financial condition, results of operations and cash flows.
• If they are unable to retain or expand their network of users, merchants, lending partners, insurers, or other business partners, their business, financial condition, results of operations, cash flows and prospects could be materially and adversely affected.
• Their operations are subject to various legal and regulatory requirements.
• They are subject to cybersecurity risks that could lead to disruptions of their operations and additional costs that adversely affect their reputation, brand, business, financial condition, results of operations and cash flows.
• Their operations are subject to regulations and licensing requirements and oversight from various regulatory bodies.
• There are pending litigations against their company and their subsidiaries.
• They depend on third-party service providers and vendors to maintain the uninterrupted performance of their platforms and technology systems.

*All the financial information for the peer companies mentioned above is on a consolidated basis and is sourced from the annual reports/ investor presentations or other public filings, as available, for the year ended March 31, 2025.

**To be updated for the company at the Prospectus stage. ***Not Available since One 97 Communications Limited reported negative EBITDA of (₹ 15,066 million) and negative Net Profit/ (loss) of (₹ 6,632 million) in FY25. ^ Market capitalization on NSE as of January 9, 2026 Notes for PhonePe:

1. Basic (loss) per equity share (in ₹) is calculated by dividing the Profit/ (loss) for the period/year by the weighted average number of equity shares computed in accordance with Ind AS 33 Earnings per share.

2. Diluted (loss) per equity share (in ₹) is calculated by dividing the Profit/ (loss) for the period/year by the weighted average number of equity shares adjusted for effect of dilution computed in accordance with Ind AS 33 Earnings per share.

3. Net asset value per equity share (in ₹) is defined as net worth as on March 31, 2025 divided by outstanding number equity shares and such number of equity shares which will result upon exercise of vested options under various employee stock option plans.

4. Return on Net worth (%) is calculated as Profit/ (loss) for the year divided by net worth as on March 31, 2025.

Anchor Investor Bidding Date: TBA

Registrar: KFin Technologies Limited

Book Running Lead Managers:
Kotak Mahindra Capital Company Limited
J.P. Morgan India Private Limited
Citigroup Global Markets India Private Limited
Morgan Stanley India Company Private Limited
Axis Capital Limited
Goldman Sachs (India) Securities Private Limited
Jefferies India Private Limited
JM Financial Limited

PhonePe Business Model

The company earns its revenue as a technology company that is building digital platforms for population-scale adoption and powering an ecosystem of apps across Payments services, Digital Distribution Services and Financial Services.

PhonePe Growth Trajectory

PhonePe’s Total Income for FY25 was ₹7631.382 crores, whereas in FY24 and FY23 it was ₹5722.200 crores and ₹3083.434 crores, respectively.

The Profit/Loss After Tax for FY25 was ₹ (1727.410) crores, whereas in FY24 and FY23 it was ₹ (1996.171) crores and ₹ (2796.069) crores, respectively.

Their Adjusted EBITDA for FY25 was ₹1477.192 crores, whereas in FY24 and FY23 it was ₹651.881 crores and ₹ (375.459) crores, respectively.

Note: () denotes negative

PhonePe Market Position

As of 31 March 2025, the company’s Total Income, Profit/ Loss After Tax, and EBITDA were ₹7631.382 crores, ₹ (1727.410) crores, and ₹1477.192 crores, respectively.

How to apply for PhonePe IPO?

• Step 1: Log in to your Kotak Neo Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details. Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID. After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification. Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request. Your funds will be blocked once you approve the mandate request on your UPI.