Walmart-owned fintech unicorn PhonePe has filed draft papers with the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO) through the confidential pre-filing route. The company aims to raise between ₹10,000 and ₹12,000 crore via a pure offer for sale (OFS), according to sources familiar with the situation.
Major shareholders, including Walmart, Tiger Global, and Microsoft, are expected to participate in the OFS, which will result in a combined stake dilution of approximately 10%, the sources indicated under condition of anonymity.
A spokesperson for PhonePe stated, “PhonePe Limited has filed the Pre-filed Draft Red Herring Prospectus with SEBI and the Stock Exchanges, under Chapter IIA of the SEBI ICDR Regulations in relation to the proposed initial public offering of its equity shares on the main board of the Stock Exchanges (‘Offer’). We will not be making any further comments at this stage in connection with the Offer.”
Earlier reports from businessline suggested that PhonePe would pursue the confidential route for its IPO filing by the end of September. The company has engaged four investment banks—Kotak Mahindra Capital, Citi, Morgan Stanley, and JP Morgan—as advisors for what is anticipated to be a significant IPO, targeting a valuation of up to $15 billion.
PhonePe reported a 40% increase in revenue, reaching ₹7,115 crore in FY25, achieved by diversifying its offerings for both consumers and merchants. The fintech company has also reported being free cash flow positive, generating ₹1,202 crore from its operations over the year.
Additionally, the firm recorded positive Adjusted Earnings Before Interest and Taxes (EBIT) for the first time at ₹117 crore. PhonePe continued to enhance its profit margins, with Adjusted EBITDA (excluding ESOP costs) more than doubling to ₹1,477 crore from ₹652 crore in the prior year, and Adjusted Profit After Tax (PAT) (excluding ESOP costs) tripling to ₹630 crore from ₹197 crore in the previous year.
On September 19, PhonePe announced that it received final authorization from the Reserve Bank of India (RBI) to operate as an online payment aggregator, which will allow it to strengthen its presence among online merchants, particularly small and medium-sized enterprises.
The company recently noted that it has surpassed 650 million registered users and maintains a merchant network encompassing 45 million outlets, processing over 360 million transactions daily, with an annualized total payment value (TPV) exceeding ₹150 lakh crore.
The information was published on September 24, 2025.
