Walmart-backed fintech firm PhonePe has moved closer to going public, filing its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India via the confidential route. The company is targeting a roughly ₹12,000 crore ($1.35 billion) initial public offering.
Under the confidential filing mechanism, PhonePe has submitted its PDRHP to market and regulatory bodies, including SEBI, BSE, and NSE, although neither the company nor its promoter has disclosed full details of the raise or timing. Sources suggest the IPO may involve a mix of fresh issuance of equity and an offer-for-sale component, with existing shareholders such as Walmart, Tiger Global, and General Atlantic expected to participate. Smaller investors may look to partially monetise holdings, while the promoter is unlikely to dilute its controlling stake significantly.
PhonePe’s financials ahead of the IPO show continued improvement. For the fiscal year ending March 2025, the company recorded revenue of approximately ₹7,115 crore, up about 40% from the prior year. Its losses narrowed year-on-year, falling to around ₹1,720-₹1,727 crore from nearly ₹1,996 crore a year earlier. PhonePe also reported becoming free cash flow positive, generating over ₹1,200 crore in cash flow from operations. Adjusted EBITDA (excluding employee stock option costs) rose sharply, as did adjusted profit after tax (excluding ESOP costs), which more than tripled. For the first time, the company posted a positive adjusted EBIT (excluding ESOP costs), signalling a stronger bottom-line trajectory.
The IPO is being structured under the “pre-filed DRHP” route introduced by SEBI, which allows companies to initiate regulatory review without making all business and financial particulars public immediately. This gives PhonePe flexibility to adapt disclosures and respond to market conditions before finalising the listing. According to sources, the IPO size is being finalised in the range of ₹10,000 to ₹13,000 crore, with about 10% of the company’s equity likely to be offered.
PhonePe has in recent months taken several preparatory steps for a listing. It converted into a public company earlier this year, introduced statutory independent directors and board committees, and effected a stock split of its shares in a 10:1 ratio. The firm has also expanded its services beyond payments: its operations now include lending, insurance distribution, wealth management, and stock broking, along with newer consumer tech businesses.
Despite strong growth, challenges remain. The fintech market is intensely competitive, regulatory oversight is tightening, and macroeconomic conditions could affect investor sentiment. For PhonePe, balancing growth, profitability, and market expectations will be critical in ensuring the IPO succeeds. Analysts suggest that how much stake existing backers sell, and how the fresh capital is deployed, will be closely watched by both markets and regulators.
PhonePe has not publicly confirmed the final IPO size, allocation of fresh issue versus offer for sale, or a listing date. The confidential filing begins the formal regulatory process, but a public launch remains subject to final approvals and disclosures.
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