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PhonePe Files Confidential IPO Papers, Eyes ₹12,000 Cr Fundraise

• ByStartupStory     |    September 24, 2025

Bengaluru-based digital payments giant PhonePe, owned by Walmart, has confidentially filed draft papers for an initial public offering (IPO), setting the stage for what could be one of India’s largest public market debuts.

The company has submitted a pre-filed Draft Red Herring Prospectus (PDRHP) with the Securities and Exchange Board of India (SEBI), the BSE, and the NSE, allowing regulators to provide feedback before sensitive financial details are disclosed publicly. The process is similar to that taken by fellow fintech Groww, which filed a PDRHP in May and has since moved ahead with its IPO plans.

According to reports, PhonePe plans to raise around ₹12,000 crore ($1.35 billion) through a share sale by existing investors. Walmart, Tiger Global, and Microsoft are among those expected to divest nearly 10% of their holdings in the offering.

In a statement, PhonePe clarified: “The filing of the PDRHP shall not necessarily mean that the company will undertake the initial public offering.”

Financial Performance

For FY25, PhonePe reported revenue from operations of ₹7,114.9 crore, a 40.5% increase from ₹5,064.1 crore in FY24. Including other income, total income rose 33.4% YoY to ₹7,631.4 crore.

Losses narrowed as well, with net loss declining 13.5% YoY to ₹1,727.4 crore in FY25, compared with ₹1,996.2 crore in the previous year.

The numbers highlight PhonePe’s growth trajectory, especially against rival Paytm (One97 Communications), which reported a steep 31% drop in operating revenue to ₹6,900 crore in FY25 from ₹9,978 crore a year earlier. However, Paytm posted a surprise turnaround, with a consolidated net profit of ₹122.5 crore in Q1FY26, against a loss of ₹838.9 crore in the year-ago period.

IPO Buzz in Fintech

PhonePe’s confidential IPO filing comes at a time when India’s fintech sector is seeing renewed investor interest. A successful listing could not only give Walmart and its backers a partial exit but also set a benchmark for the country’s maturing digital payments ecosystem.

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