PhonePe confidentially files draft IPO papers with SEBI; issue size around Rs 12,000 crore: Reports

Walmart-owned fintech major PhonePe has quietly taken its first formal step towards a public listing. The Bengaluru-based company has pre-filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) through the confidential route, setting up one of the most anticipated initial public offerings in India’s tech sector.

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The issue is expected to raise about Rs 12,000 crore ($1.35 billion) entirely through an offer for sale. Walmart, Microsoft, and Tiger Global are among the investors likely to dilute their holdings. PhonePe has picked Kotak Mahindra Capital, Citi, Morgan Stanley, and JP Morgan as its bankers, with the IPO pegged at a valuation near $15 billion.

A spokesperson confirmed the filing, clarifying that submission of the pre-filed DRHP does not automatically mean the company will proceed with the IPO. SEBI’s confidential filing mechanism, introduced in November 2022, allows companies to keep financial and strategic details private until closer to the listing.

PhonePe has in recent months made several moves that signal its readiness for the markets. In April, it converted from a private to a public company, renamed itself PhonePe Limited, and later carried out an employee stock option buyback worth Rs 700 crore to Rs 800 crore, benefiting about 1,000 employees.

On the business side, PhonePe is positioning itself as a full-stack financial services platform spanning payments, insurance, mutual funds, and lending. The company reported revenue of Rs 7,115 crore in FY25, up 40.5% from Rs 5,064 crore in FY24. Adjusted profit, excluding ESOP costs, surged to Rs 630 crore, while net loss narrowed 13.5% to Rs 1,727 crore.

PhonePe also remains India’s dominant digital payments player. National Payments Corporation of India (NPCI) data shows it held 45.74% market share by volume and 48.26% by value as of August.

The confidential filing puts PhonePe in a growing queue of new-age companies eyeing the bourses. Startups such as Ather Energy, IndiQube, BlueStone, Urban Company, and DevX have already gone public this year. Others, including Groww, PhysicsWallah, boAt, Meesho, and Shadowfax, are also pursuing the pre-filing route.