Walmart-Owned PhonePe Files for ₹12,000 Crore IPO via Confidential Route

As per the Moneycontrol report, Digital payments leader PhonePe, backed by Walmart, has filed papers for a ₹12,000 crore initial public offering through SEBI's confidential pre-filing route. This move marks a significant milestone in its journey from a startup to an industry leader in India's fintech landscape.

PhonePe to Raise ₹12,000 Crore Through Offer for Sale

As per the news report, PhonePe aims to raise approximately ₹12,000 crore ($1.35 billion) through its upcoming IPO. The entire issue will be a pure offer for sale (OFS), with key stakeholders like Walmart, Tiger Global, and Microsoft participating in a collective 10% stake dilution.

The confidential filing method allows the company to shield sensitive financial and operational details until a final decision on listing is made. This ensures flexibility without the need to reveal market-sensitive data prematurely.

Strong Financial Footing Powering IPO Ambitions

PhonePe reported a robust 40% rise in revenue, reaching ₹7,115 crore in FY25. Operating activities turned significantly healthier, producing a free cash flow of ₹1,202 crore. Adjusted EBITDA (excluding ESOPs) more than doubled to ₹1,477 crore, and adjusted profit after tax surged 220% to ₹630 crore.

Additionally, it marked its first-ever positive adjusted EBIT (excluding ESOP expenses) of ₹117 crore, a vital indicator of sustainable profitability as it navigates public listing.

Read More: PhonePe Gets RBI Approval to Act as Online Payment Aggregator!

Strategic Diversification and Expanding Reach

Since its launch in August 2016, PhonePe has evolved into a diversified financial services platform spanning insurance, lending, wealth management, and consumer apps like Pincode and Indus Appstore. As of March 2024, it boasted 53 crore users, 20 crore monthly active customers, and over 50 lakh payment devices, processing 770 crore monthly transactions with a total payment value of ₹10.5 lakh crore.

Global ambitions are also in motion, with UPI-based payment partnerships now active across 6 international markets, including the UAE, Singapore, Nepal and Mauritius.

Legal and Advisory Support for the High-Value Listing

This high-profile IPO is being guided by leading legal firms, Shardul Amarchand Mangaldas and Trilegal. Investment banks, including Citi, Kotak, JP Morgan, and Morgan Stanley, are already on board, as reported earlier in the year.

Conclusion

PhonePe’s confidential filing for a ₹12,000 crore IPO reaffirms its growth trajectory and ongoing dominance in India’s digital finance ecosystem. With a strong user base, diversified services, and improving financial metrics, this listing is poised to draw considerable market interest.

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