CHENNAI: Walmart-backed digital payments company PhonePe Limited has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), taking the first step toward what could be one of the largest fintech listings in the country.
The company plans to raise about $1.5 billion (Rs12,000 crore) through the IPO, targeting a valuation of nearly $15 billion. The offer is expected to include a mix of fresh issue of shares and an offer for sale by existing investors. Global banks including Kotak Mahindra Capital, JPMorgan, Citigroup and Morgan Stanley have been appointed as lead managers.
PhonePe filed the papers through SEBI’s confidential route, a mechanism that allows companies to work closely with the regulator on disclosures before making the draft public. This provides greater flexibility in timing and structure of the IPO.
The company has been strengthening its financials ahead of the listing. In FY25, PhonePe’s revenue rose about 40 percent to over Rs 7,100 crore, while losses narrowed to Rs 1,727 crore, down from nearly Rs 1,996 crore the previous year. It also turned free cash flow positive, reporting over Rs 1,200 crore in cash generated from operations.
PhonePe is reportedly India’s largest UPI-based payments platform, with more than 600 million registered users and around 40 million merchants. Beyond payments, it has expanded into lending, insurance, and wealth management to diversify revenue streams.
The planned IPO comes at a time when several Indian tech and fintech firms are preparing to tap capital markets. Analysts say PhonePe’s scale, strong user base, and Walmart’s backing could make it one of the most closely watched public issues in the sector.
However, market conditions, profitability outlook, and regulatory changes in digital finance will be critical in shaping investor appetite.