PhonePe Surpasses Milestones with Its Growing Merchant Network

PhonePe has surpassed 50 million registered merchants on its platform, establishing a network that reaches over 98% of India’s postal codes as of April 28, 2026, according to a statement from the Walmart-backed fintech company. In March 2026, PhonePe achieved a remarkable feat, becoming the first UPI app to exceed 10 billion transactions in a single month, representing more than 46% of overall UPI volumes, according to data from the National Payments Corporation of India (NPCI). In terms of transaction value, its share is over 49%.

Innovative Merchant Solutions and Digital Transition

PhonePe initiated its journey for merchants with QR code-based payment solutions, aimed at reducing the costs associated with digital adoption for small enterprises. Over time, the company expanded its offerings through the PhonePe Business app, which allows merchants to manage payments efficiently while accessing additional services, including loans, Smart Speakers, and Point of Sale (POS) devices.

Investment in Distribution and Support

The company has heavily invested in creating a robust distribution network, featuring on-ground sales teams and local language support, which facilitates deeper penetration into rural markets. This strategic focus has helped millions of kirana stores and small merchants shift from cash-dependent operations to the formal digital ecosystem.

Value-Added Services Driving Growth

The increasing size of its merchant base is bolstered by value-added services such as working capital loans and payment devices that enhance cash flows and operational efficiency. As of April 2026, PhonePe boasts over 600 million registered users and continues to expand its services across payments, lending, insurance distribution, and other platforms, reinforcing its position as a comprehensive financial services provider.

IPO Developments and Financial Performance

In January 2026, the company submitted its updated Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India. However, it subsequently placed its Initial Public Offering (IPO) plans on hold due to market volatility caused by the Iran-Israel-US conflict, which unsettled public markets. In the fiscal year ending March 2025 (FY25), PhonePe recorded a 40% year-on-year growth in operating revenue, reaching approximately Rs 7,115 crore, while its losses amounted to Rs 1,727 crore. During the initial half of the preceding fiscal year (H1 FY26), the revenue reached Rs 3,918 crore, with losses reported at Rs 1,442 crore.