Walmart-backed PhonePe files confidential IPO papers to raise $1.5 billion

PhonePe, the digital payments platform backed by Walmart, has filed draft documents for an initial public offering through the confidential route as it looks to raise about $1.5 billion in a listing that could value the fintech major at roughly $15 billion, a company spokesperson said on Wednesday.

The company said it "has filed the pre-filed Draft Red Herring Prospectus (“PDRHP”) with the Securities and Exchange Board of India and BSE Limited and the National Stock Exchange of India Limited in relation to the initial public offering of its equity shares, under Chapter IIA of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018. The filing of the PDRHP shall not necessarily mean that the Company will undertake the initial public offering.”

Responding to ET's queries, PhonePe confirmed the filing late Tuesday night and said the move complied with Sebi’s disclosure norms.

Financial performance

The fintech platform narrowed its net loss by 13.4% in 2024-25 to Rs 1,727.4 crore from Rs 1,996.1 crore in the previous fiscal year, buoyed by a surge in revenue, filings with the Registrar of Companies showed. Operating revenue rose 40.4% to Rs 7,114.8 crore from Rs 5,064.1 crore during the same period.

Expenses climbed 21.1% to Rs 9,394 crore, driven by higher payment processing charges and personnel costs. Payment settlement fees surged 44.7% to Rs 1,688.1 crore, while employee benefit expenses grew 13.6%.

Diversifying beyond payments

Though payments remain PhonePe’s anchor business, accounting for most of its revenue, the company has expanded into credit, insurance and stockbroking through its subsidiaries. Earlier this month, it secured a payment aggregator licence from the Reserve Bank of India, allowing it to offer online merchant payment services.

PhonePe has also been investing in wealth management and app distribution. In 2022, the company shifted its domicile from Singapore to India, and later moved ownership of its IndusOS Appstore acquisition to India, a restructuring seen as preparation for a domestic listing.

IPO landscape

The fintech platform has tapped Kotak Mahindra Capital, JPMorgan Chase, Citigroup and Morgan Stanley to manage the offering. The company’s last known private valuation was $12 billion in 2023.

PhonePe’s filing comes just days after fellow Bengaluru-based fintech Groww submitted updated IPO documents with Sebi on September 16, underscoring a renewed wave of listings among Indian startups.

Backed by Walmart since 2018, PhonePe is already among the country’s largest digital payments firms, competing with Google Pay and Paytm in processing billions of transactions each month. A successful offering would mark one of the biggest fintech IPOs in India and could test investor appetite for loss-making but fast-growing technology platforms.

Also read | IPO-bound PhonePe trims FY25 loss to Rs 1,720 crore as revenue jumps 40% YoY to Rs 1,998 crore


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