ESOP program worth ₹700–₹800 crore announced for over 1,000 employees
PhonePe has approximately 12,000 employees, with scope to expand the buyback
IPO draft filing expected by September 2025, launch in early 2026
IPO-bound fintech unicorn PhonePe has announced an ESOP (employee stock ownership plan) program worth up to ₹700 to ₹800 crore, according to Inc42 reports. Over 1,000 employees are eligible for the ESOP buyback program.
However, the report stated that this number can go up if PhonePe increases the buyback program size. Currently, the fintech major has approximately 12,000 employees, the report said.
This came at a time when PhonePe is reportedly planning to file its IPO papers via confidential route by the end of September 2025. The fintech is expected to launch its IPO on Indian bourses by early 2026.
The platform aims to raise around $1.5 billion through the initial public offering. The public issue is expected to value PhonePe at around $10 billion to $12 billion. 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, the report added.
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.
It has recently unveiled digital-first Udyam registration via the Udyam Assist Platform (UAP) at an event held in Delhi. Udyam is a 12-digit government-issued identification number that formally recognizes micro and small enterprises (MSEs), enabling them to access benefits such as credit, subsidies, and other government schemes.
The platform led the UPI market in July with about 8.93 billion transactions, followed by Google Pay's 6.92 billion and Paytm's 1.36 billion, according to data from the National Payments Corporation of India (NPCI). In terms of value, PhonePe processed ₹12.20 trillion, followed by Google Pay at ₹8.91 trillion and Paytm at ₹1.43 trillion.
In July, PhonePe commanded over 45% of UPI transactions by volume, with Google Pay close behind at 35.56%. Paytm accounted for 7.02% of the market, the data revealed.
PhonePe was founded in December 2015 as a Flipkart subsidiary. It saw its ownership shift after Walmart's investment in Flipkart. In December 2020, Walmart restructured the group, making PhonePe its direct subsidiary and formally separating it from the e-commerce major.
