PhonePe files confidential IPO papers, plans to raise Rs 12,000 Cr
The Bengaluru-based firm submitted a pre-filed Draft Red Herring Prospectus with the Securities and Exchange Board of India, as well as the BSE and NSE. It reportedly plans to raise about Rs 12,000 crore ($1.35 billion) by selling shares owned by existing investors.
Walmart-owned digital payments major PhonePe has confidentially filed draft papers with market regulators and exchanges as it gears up for one of the country’s largest initial public offerings.
The Bengaluru-based firm submitted a pre-filed Draft Red Herring Prospectus (PDRHP) with the Securities and Exchange Board of India (Sebi), as well as the BSE and NSE, according to a company statement.
This allows PhonePe to engage regulators to receive feedback before releasing trade sensitive financial details to the public. Meanwhile, another Bengaluru-fintech, Groww, which took a similar route in May this year, is now finally moving ahead with its IPO plans and has released an updated DRHP.
In a statement shared with YourStory, PhonePe said, "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."
PhonePe reportedly plans to raise about Rs 12,000 crore ($1.35 billion) by selling shares owned by existing investors. Walmart, Tiger Global and Microsoft are expected to take part in this, together selling around 10% of the company, according to a report by Moneycontrol.
PhonePe reported a sharp rise in revenue for the year ended March 31, 2025 (FY25), even as losses persisted. Revenue from operations climbed 40.5% to Rs 7,114.9 crore in FY25, compared with Rs 5,064.1 crore a year earlier. Including other income, total income rose 33.4% year-on-year to Rs 7,631.4 crore. Net losses narrowed 13.5% to Rs 1,727.4 crore from Rs 1,996.2 crore in FY24.
Its performance contrasts sharply with that of rival Paytm, which has been grappling with a regulatory clampdown.
Revenue from operations of One97 Communications, Paytm’s parent, fell 31% in FY25 to Rs 6,900 crore from Rs 9,978 crore a year earlier. But, in a turnaround, the company reported a consolidated net profit of Rs 122.5 crore for the April-June 2025 quarter (Q1FY26), against a loss of Rs 838.9 crore a year ago.
Edited by Swetha Kannan