IPO-Bound PhonePe Launches ₹800 Crore ESOP Buyback

PhonePe, India's leading UPI payments provider, has initiated an Employee Stock Ownership Plan (ESOP) buyback programme valued at up to ₹800 crore, just ahead of filing for its much-anticipated public listing, as per an Inc42 report. This step signifies the fintech major’s commitment to recognising employee contributions as it enters the next stage of corporate evolution.

PhonePe Offers ₹800 Crore ESOP Buyback to Employees

IPO-bound PhonePe has rolled out an ESOP buyback scheme worth between ₹700 crore and ₹800 crore. More than 1,000 employees are eligible for the programme, reflecting the company’s efforts to share value creation with its workforce. With approximately 12,000 employees on its payroll, the number of eligible employees may increase if the buyback size expands further.

IPO Filing Expected Soon with Public Listing in 2026

As per news reports, the ESOP buyback coincides with PhonePe’s anticipated IPO filing this month. The startup is targeting a public listing in early 2026 and plans to raise between $1.2 billion and $1.5 billion, roughly ₹10,000 crore to ₹13,000 crore. 

The offering will include a combination of fresh shares and offer-for-sale (OFS) components, with major shareholder Walmart expected to retain its stake, while investors like Tiger Global and General Atlantic may opt for partial exits.

Read More: PhonePe Signs Pact with SIDBI to Digitally Register Informal Micro Enterprises!

Current Market Valuation Versus Previous Funding Round

As per news reports, though PhonePe last secured funding at a valuation of $12 billion, current industry estimates suggest a potential IPO valuation between $7 billion and $8 billion. This mirrors the broader market recalibration of late-stage startup valuations. The company has cumulatively raised about $2.3 billion and is backed by prominent global investors.

Leadership in UPI and Fintech Services

PhonePe dominates India's UPI ecosystem with a 46.5% market share as of last month. Its core offerings include digital payments, credit, insurance, and mutual fund services. Additionally, with ventures like Pincode in the quick commerce segment, the company continues to broaden its fintech footprint.

Conclusion

The launch of the ₹800 crore ESOP buyback underlines PhonePe’s strategy to reward its employees while setting the stage for a prominent IPO. With robust market presence and diversified offerings, the fintech unicorn is poised to be a significant player in India's public market landscape by 2026.

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