PhonePe Files Confidential IPO Papers With SEBI

SUMMARY

PhonePe is looking to raise about INR 12,000 Cr ($1.35 Bn) via a complete offer for sale (OFS)

Walmart, Tiger Global and Microsoft are the investors who plan to offload their stakes via the OFS

Ahead of filing its DRHP, the fintech giant initiated ESOP buyback worth up to INR 700 Cr to INR 800 Cr earlier this month

Walmart-owned fintech giant PhonePe has pre-filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).

The company is looking to raise about INR 12,000 Cr ($1.35 Bn) via a complete offer for sale (OFS), Moneycontrol reported, citing sources.

Walmart, Tiger Global and Microsoft are the investors who plan to offload their stakes via the IPO, the report added.

A PhonePe spokesperson confirmed that the fintech company filed the DRHP via the confidential route. “The company has filed the pre-filed Draft Red Herring Prospectus (“PDRHP”) with the Securities and Exchange Board of India and BSE Limited and the National Stock Exchange of India Limited in relation to the initial public offering of its equity shares, under Chapter IIA of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018. The filing of the PDRHP shall not necessarily mean that the Company will undertake the initial public offering,” the spokesperson said.

Earlier this month, Inc42 reported that PhonePe, ahead of filing its DRHP, initiated ESOP buyback worth up to INR 700 Cr to INR 800 Cr which would benefit at least 1,000 employees.

The fintech major turned into a public company in April, changing its name to ‘PhonePe Limited’ from ‘PhonePe Private Limited’ earlier.

Founded in 2012 as a digital payments platform, PhonePe was among the first major tech companies to shift domicile to India from Singapore, paving the way for an imminent IPO.

The Bengaluru-based company has raised nearly $2.3 Bn since inception.

On the financial front, the IPO-bound company’s revenue zoomed 40.5% to INR 7,114.8 Cr in FY25 from INR 5,064.1 Cr in FY24. PhonePe also managed to narrow its net loss by 13.5% to INR 1,727.4 Cr in FY25 from INR 1,996.1 Cr in the previous year.

With the confidential filing, PhonePe has joined a long list of new-age tech companies that are eyeing IPO over the next few months. Seven such companies – Ather Energy, IndiQube, Smartworks, BlueStone, Urban Company, DevX, and ArisInfra – have already made their stock market debuts this year.

A number of new-age tech companies like Aequs, Shadowfax, Captain Fresh, Groww, PhysicsWallah, boAt, among others, have taken the pre-filing route for their public issues.