PhonePe Becomes General Atlantic’s Largest Bet, Bags Another $600Mn Investment Ahead of IPO

US private-equity firm General Atlantic has invested $600 million in PhonePe in a fresh secondary transaction ahead of the company’s planned local listing early next year, ET reported. The infusion values the Walmart-backed fintech at about $14.5 billion and is expected largely to help employees meet ESOP tax obligations as PhonePe prepares to go public.

The deal marks one of General Atlantic’s largest single-company bets in India and comes as PhonePe confidentially prepares IPO paperwork.

The new capital, mostly secondary in nature, increases General Atlantic’s cumulative exposure to PhonePe to roughly $1.15 billion since 2023 and lifts its stake to about 9% from roughly 4.4%. The timing of this deal highlights investor confidence in PhonePe’s dominant payments franchise even as the company accelerates its push into lending, insurance and wealth products.

PhonePe’s Scale & Financials

PhonePe reported operating revenue of ₹7,114.8 crore for FY25, up about 40% year-on-year, while consolidated net losses narrowed to ₹1,727.4 crore.

The company’s adjusted profits (excluding ESOP charges) have improved materially, and it finished FY25 with around ₹6,000 crore in cash reserves, a financial profile investors cite as supportive ahead of a large IPO.

PhonePe remains the dominant UPI player: NPCI and market-tracking reports show the app handled roughly 8.9 billion transactions in September 2025, representing about 45%–46% of monthly UPI volume, a position that both underpins monetisation opportunities and draws regulatory attention.

Use of Proceeds

Sources say the infusion is primarily secondary, intended to provide liquidity for employees exercising ESOPs and to help cover related tax liabilities; there was no founder or investor sell-down reported as part of this tranche.

The funding reportedly comes as PhonePe prepares a large initial public offering, earlier media reports have indicated the company’s IPO plans could include a sizable offer-for-sale.

PhonePe’s dominant UPI position has attracted regulatory scrutiny: the RBI/NPCI-backed proposal to cap any single UPI app’s market share at 30% (now pushed out to end-2026) remains an overhang for market structure and competitive dynamics.

Separately, PhonePe’s ambitions beyond payments, into unsecured credit, insurance distribution and stockbroking, face operational, regulatory and margin pressures as the firm scales separate business units.