Walmart-backed PhonePe Targets up to $10.5 Billion Valuation in India IPO

Country's most valuable fintech firm PhonePe is eyeing to list at a valuation in the range of USD 9 billion to USD 10.5 billion (about Rs 75,000 crore to Rs 87,000 crore), as it expects to raise around USD 1.05 billion from the sale of equities, sources aware of the development said.

The expected valuation reflects the company's valuation will be lower compared to the last funding round in 2023 when PhonePe raised USD 100 million at a valuation of USD 12 billion.

Even at reduced valuation, the IPO is expected to be the second biggest public issue after its competitor Paytm that was listed at a valuation of around USD 20 billion (about Rs 1.4 lakh crore) in November 2021.

The PhonePe IPO is entirely an Offer-for-Sale (OFS) by existing shareholders.

PhonePe shareholders, Walmart, Tiger Global and Microsoft Global Finance, will offload stakes worth around Rs 10,115 crore, or about USD 1.1 billion, through the company's forthcoming IPO, according to updated draft papers of the fintech firm.

PhonePe promoter WM Digital Commerce Holdings Pte will sell 45,942,496 of 3,71,517,890 shares or about 12 per cent stake in the company through the OFS valued at Rs 1,996.8 per share, based on the weighted average cost of acquisition per equity share.

Microsoft and Tiger Global have plans to exit from the firm during the IPO.

Walmart backed PhonePe as filed for draft paper for IPO in September and expects to conclude the process by April if market conditions remain appropriate and any potential impact from Middle East military conflict is neutralised.

PhonePe has reported strong revenue growth and sharply narrowing losses over the past three fiscal years, according to its draft red herring prospectus (DRHP).

Revenue from operations rose to Rs 71,14.85 crore in FY25 from Rs 2,914.28 crore in FY23, reflecting a compound annual growth rate (CAGR) of 56.25 per cent.

The company's revenue mix has diversified significantly beyond core UPI payments.

Merchant Payments contribution increased from 14.75 per cent in FY23 to 30.78 per cent by September 2025.

Financial Services, including lending and insurance distribution, expanded from 0.96 per cent in FY23 to 11.55 per cent in the first half of the current fiscal year.

Together, merchant payments and financial services accounted for 42 per cent of revenue, underscoring growing monetisation across verticals.

Losses narrowed substantially during the period. Restated losses declined by over Rs 1,060 crore between FY23 and FY25 to Rs 1,727.41 crore. Loss margins improved to (22.64) per cent from (90.68) per cent over the same period.

The company achieved positive adjusted EBITDA in FY24 and FY25 and reported adjusted EBIT profitability in FY25. It also generated free cash flow of Rs 1,90.47 crore in FY25 and over Rs 2,50 crore in the six months ended September 30, 2024.

Founded in 2016 and headquartered in India, PhonePe had over 65 crore registered users and a merchant network of more than 4.7 crore as of September 30, 2025. Its offerings span consumer and merchant payments, lending and insurance distribution, and new platforms such as Share Market and Indus Appstore.