PhonePe has gotten SEBI’s approval for its highly awaited IPO, which will make it India’s second-largest fintech public offering with a target value of $15 billion. This payments powerhouse, which is sponsored by Walmart, processes billions of dollars in UPI transactions every month and has a market share of more than 45%. Investors see a lot of room for growth because the company’s FY25 financials are good and its financial services are growing. The registrar is Link Intime India Pvt Ltd.
IPO Timeline
PhonePe sent in its secret DRHP in September 2025. SEBI approved it in January 2026. An new DRHP filing is coming soon. The IPO is set up as an Offer for Sale (OFS) by promoters and early investors. The goal is to raise about $1.5 billion (Rs 12,500-13,000 crore) without adding any new capital. The NSE and BSE listing dates are still up in the air until mid-2026, depending on market conditions and the ultimate price.
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Details about the issue size and lot
The new issue size is zero, and the whole OFS is made up of up to 10% of the post-issue equity from current shareholders. We are still waiting for information on lot sizes, pricing bands, and category allocations from DRHP. However, our estimates are the same as those of other fintech companies: retail at 10-35%, QIBs at 50-60%, and NII at 15%.
| Category | Expected Allocation (%) | Minimum Lot Size (TBD) | App Amount (Rs, at Rs 1,000/share est.) |
|---|---|---|---|
| Retail | 35 | 15 shares | 15,000 |
| NII | 15 | 75 shares | 75,000 |
| QIB | 50 | 1 lot (varies) | Institutional |
Grey Market Premium and Review
No active GMP trades yet due to pre-DRHP stage, but early buzz suggests 20-30% premium post-price discovery, fueled by 40% revenue growth and cash flow positivity. PhonePe earns a strong buy rating for its UPI dominance (9.8B transactions Dec 2025), profitability inflection (adjusted PAT Rs 630 Cr FY25), and diversification into lending/insurance. Risks include regulatory shifts and competition from Google Pay.
Merchant Bankers and Anchor Investors
Kotak Mahindra Capital leads as book-running lead manager, joined by JPMorgan, Citigroup, and Morgan Stanley. Anchor bidding date set post-price band; likely participants include Fidelity, Temasek, and sovereign funds, mirroring large fintech OFS patterns.
| Merchant Bankers | Role |
|---|---|
| Kotak Mahindra Capital | Lead Manager |
| JPMorgan Chase | Lead Manager |
| Citigroup | Lead Manager |
| Morgan Stanley | Lead Manager |
The Process of Allotment and Listing
Allotment should happen 4–5 days after subscription by a lottery for categories that are oversubscribed. The registrant is still to be decided (either Link Intime or KFintech). Refunds are sent electronically within 24 hours. Shares are refunded the same day, and the listing is T+4 from the closing.
Promoters and Holding Pattern
Walmart holds ~84-85% pre-IPO stake as majority promoter post-2018 Flipkart acquisition; General Atlantic at 5%. Post-IPO, promoter group dilutes to ~70-75% via OFS, with public float at 10-15% initially.​
| Shareholder | Pre-IPO Stake (%) | Post-IPO Stake (Est. %) |
|---|---|---|
| Walmart | 85 | 75 |
| General Atlantic | 5 | 4.5 |
| Others/Employees | 10 | 9 |
The excitement around the PhonePe IPO is growing as this fintech giant, backed by Walmart, takes over India’s digital payments space with record UPI transaction volumes. Sameer Nigam, Rahul Chari, and Burzin Engineer established PhonePe in 2015 as a way for Flipkart customers to pay. By 2016, it had become its own company. It has over 550 million registered users and processes over 12 billion transactions each year, making it a key part of India’s move to a cashless society.
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Information About the Company
PhonePe, which is based in Bengaluru, was the first company to offer UPI ease. By December 2025, it had 47% of the market thanks to rapid transfers and QR payments with no fees. Its ecosystem includes merchant payments, consumer financing through partnerships with lenders, and insurance distribution. This lowers the company’s reliance on payments from 100% to 89%. Walmart’s 85% ownership gives it a lot of money to invest in wealth tech and cross-border remittances.
PhonePe’s sales jumped 40% to Rs 7,115 Cr in FY25, thanks to a rise in transaction value to Rs 16 lakh Cr each quarter and more people using its financial services. Strategic purchases like Open Rewards and investments in Indus Net make personalization and BNPL better. Regulatory tailwinds from RBI’s UPI 2.0 and NPCI caps make it easier for it to grow than for smaller competitors.
​PhonePe’s methodology is different from Paytm’s in that it makes money (Rs 630 Cr FY25 PAT) by cutting costs and having 80 Cr monthly transacting users. Google Pay is behind in lending and insurance, while PhonePe’s network of 1,200+ merchants in cities brings in 60% of its revenue from small and medium-sized businesses. IPO money will speed up international business and AI-powered fraud detection.
After going public with a $15 billion value, PhonePe wants to become a unicorn by making 25–30% more money each year through FY28. It hopes to make Rs 25,000 Cr in income from gold savings and mutual funds. PhonePe sets standards for size and compliance in an industry that is becoming more mature as India’s fintech IPO wave hits, second only to the NSE. Investors who invested on the PhonePe IPO get to see how the digital world is changing for 1.4 billion people.
Financial Performance
PhonePe reported Rs 7,115 Cr revenue in FY25, up 40% YoY from Rs 5,064 Cr in FY24, driven by payments (89%), insurance/lending (8%). Net loss narrowed 13% to Rs 1,727 Cr; adjusted PAT hit Rs 630 Cr (3x YoY), with positive operating cash flow Rs 1,202 Cr.​
| Year | Revenue (Rs Cr) | Net Loss (Rs Cr) | Adj. PAT (Rs Cr) | Op. Cash Flow (Rs Cr) |
|---|---|---|---|---|
| FY24 | 5,064 | 1,996 | 197 | Negative |
| FY25 | 7,115 | 1,727 | 630 | 1,202 |
Valuation Insights
At $15B valuation, PhonePe trades at ~18-20x FY25 sales, premium to peers due to 47% UPI share and profitability path. FY26E multiples could compress to 12-15x on projected Rs 10,000+ Cr revenue.​
Peer Comparison
PhonePe outpaces Paytm in UPI volume (46% vs 7%) and growth, justifying higher valuation despite Paytm’s broader services.​
| Metric | PhonePe (FY25) | Paytm (Recent) |
|---|---|---|
| Valuation/Mkt Cap | $15B (target) | $6.5-8B |
| Revenue (Rs Cr) | 7,115 | 7,625 |
| UPI Share | 46% | 7% |
| P/S Multiple | 20x | 8-9x |
PhonePe Contact Details
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Registered Office: Office-2, Floor 4,5,6,7, Wing A, Block A, Salarpuria Softzone, Service Road, Bellandur, Bengaluru (Bangalore), Karnataka 560103, India​
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Head Office Phone: +91-80-68727374​
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Customer Helpline: 080-6872 7374 or 1800-102-1482​
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Business/Merchant Email: business@phonepe.com​
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Investor Relations Email: investors@phonepe.com​
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Website:Â www.phonepe.com
Registrar Contact Details
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IPO Registrar: Unannounced (likely Link Intime India Pvt Ltd or KFin Technologies)​
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Link Intime Address: C-101, 1st Floor, 247 Park, LBS Marg, Vikhroli West, Mumbai 400083​
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Link Intime Phone: +91-22-49186000​
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Link Intime Email:Â registrar@linkintime.co.in
Mr. Nadim Abbas M G is an Intermediate Chartered Accountant with a strong background in Information Technology. He combines his expertise in IT with a deep understanding of the stock market, making him a valuable resource for both financial and technical insights. With hands-on experience in accounting, IT systems, and stock market analysis, Nadim excels in bridging the gap between finance and technology, offering strategic advice and expert guidance in both domains.
