Exclusive: IPO-Bound PhonePe Initiates ESOP Buyback Worth INR 800 Cr

IPO-bound fintech unicorn PhonePe has launched an ESOP buyback programme worth up to INR 700 Cr to INR 800 Cr, sources told Inc42.

At least 1,000 PhonePe employees are eligible under the ESOP buyback programme, the sources said. However, they added that this number can go up as the company may increase the size of the buyback programme. Notably, PhonePe has around 12,000 employees currently.

A questionnaire sent to PhonePe didn’t elicit any response till the time of publishing this story.

The buyback programme comes as the company prepares to pre-file its IPO papers later this month. It roped in Kotak Mahindra, Citigroup, JP Morgan and Morgan Stanley in February to helm its IPO. 

The Walmart-owned company is looking to raise $1.2 Bn to $1.5 Bn (about INR 10,000 Cr to INR 13,000 Cr) through its IPO and is eyeing public listing in early 2026. 

The public issue will be a mix of a fresh issue of shares and OFS. While parent Walmart is unlikely to sell a substantial part of its stake, smaller investors such as Tiger Global and General Atlantic may look for partial exit through the IPO, as per reports.

Industry insiders told Inc42 that taking the current market into account, PhonePe is likely to float the IPO at a valuation of around $7 Bn to $8 Bn.

It needs to be highlighted that PhonePe last raised funding at a valuation of $12 Bn.

The fintech giant offers services like payments processing, credit, broking, among others. It also operates quick commerce platform Pincode. PhonePe is a leader in the UPI payments segment. Last month, it held a 46.5% share in the UPI market. 

The company has raised a total funding of nearly $2.3 Bn to date from investors like Ribbit Capital, Tiger Global, Tencent, TVS Capital Funds, among others.

After the filing of IPO papers, PhonePe will join the long list of fintech startups eyeing a public listing in the next few months, including Pine Labs, Groww, Kissht, among others.