PhonePe Files Confidential Draft Papers for ₹12,000 Crore IPO

In order to generate about ₹12,000 crore ($1.5 billion) for a possible IPO, PhonePe has secretly submitted draft documents to SEBI. This may put the company's valuation at up to $15 billion. In addition to growing into new financial services, PhonePe published strong FY25 results with 40% revenue growth and its first positive free cash flow. This significant fintech IPO, which is led by shareholders like Walmart, Tiger Global, and Microsoft, marks a milestone. The confidential method enables PhonePe to keep sensitive information private as it prepares for a public market launch.

MARKET NEWS

9/24/20251 min read

As it gets ready for an IPO that could raise up to ₹12,000 crore (roughly $1.5 billion) and value the company at almost $15 billion, PhonePe, the top digital payments platform supported by Walmart, has secretly submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI).

Key Details of the Filing

  • Ahead of PhonePe's eagerly awaited IPO, the business has achieved a major milestone with its secret submission to SEBI, which permits it to keep crucial financial and strategic information private until it is closer to the public offering.

  • Major investors including Walmart, Tiger Global, and Microsoft are expected to participate in the stake dilution, which is projected to be around 10% of equity, as part of the IPO, which is anticipated to be a combination of a fresh issue of shares and an Offer for Sale (OFS).

  • PhonePe has named Kotak Mahindra Capital, JP Morgan, Citi, and Morgan Stanley as its primary advisors for the public offering.

Financial and Business Highlights

  • PhonePe's operating income increased by 40% year over year to ₹7,115 crore in the fiscal year 2024–2025, while its net loss decreased by 13.4% to ₹1,727.4 crore.

  • With operations producing ₹1,202 crore, the company achieved positive free cash flow for the first time and maintains its dominant position in the Indian digital payments sector.

Timelines and Market Context

  • With regulatory approvals and appropriate market conditions, the IPO is expected to list by early to mid-2026.

  • Since its introduction by SEBI, the secret path for DRHP registration has become more and more popular among digital startups looking to enter public markets while safeguarding sensitive company data.

As PhonePe expands beyond payments into insurance, lending, and wealth management, its initial public offering (IPO) is anticipated to rank among the biggest technology listings in India, enhancing its position as a fintech leader.

Follow us on