Walmart-Backed PhonePe Files 'Confidential' IPO Papers with Sebi, Eyes $15 Bn Valuation

Fintech major PhonePe has finally filed its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (Sebi) on Tuesday, according to The Economic Times report. The IPO-bound start-up has chosen confidential route, which allows it to retail control over its sensitive financial and strategic information.

The Walmart-backed fintech player is preparing for a $1.5 billion IPO that could peg its valuation at roughly $15 billion. PhonePe is expected to launch its IPO on Indian bourses by early 2026.

The IPO will comprise both new shares issuance and an offer for sale (OFS). Of $1.5 billion, about 10% of the company’s equity will be offered for sale in the IPO. While majority shareholder Walmart is expected to retain most of its holding, investors like Tiger Global and General Atlantic may leverage the listing for partial exit.

Earlier reports confirmed that the Walmart-owned firm has appointed advisers, including Kotak Mahindra Capital, JP Morgan, Citi, and Morgan Stanley for the IPO.

In April, PhonePe formally changed its name from “PhonePe Private Limited” to “PhonePe Limited” following approval at a general meeting—an important legal step for companies planning to list on Indian stock exchanges.

PhonePe's FY25 Financials

PhonePe saw its operating revenue climb over 40% in FY25 to ₹7,114.8 crore as compared to ₹5,064.1 crore in the previous year. The Walmart-backed fintech has attributed the rising revenue to stronger topline growth and improved margins.

The start-up’s net loss reduced by 13.5% to ₹1,727.4 crore from ₹1,996.1 crore in FY24, according to financial statements sourced from the Registrar of Companies (RoC).

The payments segment remained the biggest revenue source for Phonepe. It earned ₹6,299.7 crore from payments services in FY25, a 31.5% jump from ₹4,788.5 crore in the previous fiscal.

However, the sharpest growth came from its insurance and lending vertical, where revenue surged 207.7% to ₹557.6 crore from ₹181 crore in FY24. The fintech has generated an additional ₹57.2 crore from other service streams.

PhonePe’s total expenditure also surged 21.2% from ₹7,754.2 crore in FY24 to ₹9,394 crore in the financial year 2025. It has also witnessed 54% to ₹413.6 crore in FY25 from ₹903.1 crore in FY24. Its EBITDA margin also improved to -6% from -18% in FY24.

PhonePe Joins Groww on IPO Trail

PhonePe is the latest Bengaluru fintech to eye a public listing by early 2026. It has joined the IPO trail alongside Groww, which submitted its updated prospectus to Sebi on September 16. Groww aims to raise ₹7,000 crore during the public listing.

The IPO comprises a fresh issue of equity shares worth ₹1,060 crore along with an offer for sale (OFS) component of 57,41,90,754 equity shares by promoters and investor shareholders. The OFS component is expected in the range of ₹5,000-6,000 crore.

The company, which is backed by marquee investors such as Peak XV, Tiger Capital, and Microsoft CEO Satya Nadella, plans to use proceeds of the IPO for investment in technology development and business expansion.