PhonePe to file for ₹13,000cr IPO by month-end
What's the story
Walmart-backed fintech giant PhonePe is gearing up to file for its initial public offering (IPO) by the end of September. According to Moneycontrol, the company is considering a confidential filing route. The IPO could see an equity dilution of about 10%, with PhonePe also looking to raise some fresh capital through this process.
Valuation details
IPO likely to value PhonePe at $12-15 billion
The proposed IPO is expected to be sized between ₹10,000-13,000 crore (approximately $1.2-1.5 billion), giving the company a valuation of around $12-15 billion. While some investors may get liquidity from this move, Walmart, which owns over 70% of PhonePe, is not likely to sell off much stake in the upcoming IPO. Smaller investors like Tiger Global and General Atlantic may seek partial exits through this offering.
Business overview
PhonePe's dominance in UPI payments
PhonePe dominates the QR-based payments space with over 45% of the UPI payments market share. It also runs a payment gateway and offers other financial products such as insurance and loans through its app. In July, PhonePe processed some 8.93 billion UPI transactions, according to NPCI data. For FY24, it posted a 73% jump in operating revenue to ₹5,064 crore with an adjusted PAT of ₹197 crore.
Strategic moves
Transition to public entity and domicile change
PhonePe has been working on its IPO for several quarters now. In a strategic move toward listing, the company transitioned into a public entity—PhonePe Limited—in April 2025. Earlier in 2022, PhonePe moved its domicile from Singapore to India at an expense of nearly ₹8,000 crore in taxes. This was seen as a sign of its long-term commitment to Indian capital markets.
Management team
Lead advisors and market context
JP Morgan, Morgan Stanley, Citi, and Kotak Mahindra Capital have been appointed as lead advisors for PhonePe's IPO. The company's decision to go public comes at a time when other leading tech companies like Meesho and Lenskart are also preparing for their public listings. This makes PhonePe's upcoming offering one of the most anticipated tech launches in India's capital markets this year.