Walmart-backed digital payments and financial services platform PhonePe has filed draft papers with SEBI for a mega initial public offering (IPO), aiming to raise around ₹12,000 crore ($1.35 billion). The filing was made via the confidential pre-filing route, signaling the company’s cautious approach toward going public while maintaining sensitive business information.
PhonePe has submitted its Pre-filed Draft Red Herring Prospectus (PDRHP) with the Securities and Exchange Board of India and stock exchanges, including BSE and NSE, under Chapter IIA of SEBI’s Issue of Capital and Disclosure Requirements Regulations, 2018.
The IPO is expected to be a pure offer for sale (OFS), meaning existing shareholders will sell shares rather than the company issuing new ones.
Walmart, Tiger Global, and Microsoft are the major shareholders participating in the OFS, diluting around 10% of their combined stake.
Filing via the confidential route does not guarantee that the IPO will be conducted; the company may withdraw or adjust plans based on market conditions.
PhonePe has roped in Kotak Mahindra Capital, Citi, Morgan Stanley, and JP Morgan as its investment banking advisors.
Other key banks involved include Jefferies, Goldman Sachs, Axis Capital, and JM Financial.
Legal advice is being provided by Shardul Amarchand Mangaldas, Cyril Amarchand Mangaldas, and Trilegal for this high-profile IPO.
PhonePe aims for a listing valuation of up to $15 billion (~₹1.33 lakh crore).
The firm competes directly with Google Pay as one of the top players in India’s UPI payments ecosystem.
Peer fintech company Paytm (One97 Communications) has seen its share price rise 73.43% over the last year, highlighting strong investor interest in digital payments.
PhonePe has delivered robust financial growth in FY25:
Revenue surged 40% YoY to ₹7,115 crore.
The company became free cash flow positive, generating ₹1,202 crore.
Adjusted EBITDA (excluding ESOP costs) more than doubled to ₹1,477 crore.
Adjusted PAT rose 220% to ₹630 crore.
The firm also reported its first positive Adjusted EBIT (excluding ESOP costs) at ₹117 crore.
PhonePe is diversifying beyond payments into loan distribution, stock broking, insurance, lending, and wealth management.
PhonePe, launched in August 2016, has seen significant growth:
53 crore registered users and 20 crore monthly active customers as of March 2024.
50+ lakh net payment devices deployed.
Processes 770+ crore transactions monthly, with a total payment value of ₹10.5 lakh crore.
Expanded globally via partnerships in 6 countries, including Singapore, UAE, Nepal, Sri Lanka, Bhutan, and Mauritius.
SEBI introduced the confidential pre-filing route in November 2022 for main board issuers.
This allows companies to keep sensitive details private, including financial metrics, business risks, and strategies.
Unlike standard DRHP filings, the document does not become public immediately, giving companies flexibility to adjust or withdraw the IPO without revealing confidential data.
Several other companies have used this route, such as Tata Capital, Tata Play, Oyo, Swiggy, Vishal Mega Mart, Credila Financial Services, Indira IVF, and PhysicsWallah.
Conclusion
PhonePe’s filing for a ₹12,000 crore IPO via the confidential route highlights its strategic approach toward raising capital while keeping core business data private. With strong financials, a growing user base, and a robust digital payments and financial services ecosystem, the company is poised to attract significant investor interest. The participation of global investors like Walmart, Tiger Global, and Microsoft further underscores the IPO’s potential impact on India’s fintech market.