Highlights
PhonePe Files Updated Draft Red Herring Prospectus for IPO Launch
PhonePe has officially submitted its Updated Draft Red Herring Prospectus (UDRHP) to the Securities and Exchange Board of India (SEBI). This important step follows SEBI’s recent approval of the company’s initial public offering (IPO) plan, paving the way for one of the most eagerly awaited fintech market entries in India.
Structure of the IPO
The upcoming IPO is set to be entirely an Offer for Sale (OFS), meaning no new shares will be issued by PhonePe. This structure indicates that the company will not gain direct financial benefits from the public offering. Instead, existing shareholders will be selling their stakes, creating liquidity opportunities for early investors.
Details of the Updated DRHP
According to the UDRHP dated 21 January 2026, the offering will include up to 5.06 crore equity shares. Walmart’s subsidiary, WM Digital Commerce Holdings, intends to divest around 4.59 crore shares, representing about 9.06% of its equity. Additionally, Tiger Global and Microsoft are planning to liquidate their total holdings through smaller sale tranches.
Expected IPO Size and Valuation
The anticipated size of the IPO is approximately Rs 12,000 crore (about $1.5 billion), which could potentially value PhonePe between $14.5 billion and $15 billion.
The UDRHP reveals that Walmart’s unit, WM Digital Commerce, holds a substantial 71.77% stake in PhonePe. Other stakeholders include General Atlantic and Headstand Pte. Ltd, owning 8.89% and 5.73%, respectively. The company’s co-founders, Sameer Nigam and Rahul Chari, each possess a 2.55% ownership stake.
Financial Performance Insights
In the fiscal year ending March 2025 (FY25), PhonePe experienced a notable 40% year-on-year increase in operating revenue, reaching approximately Rs 7,115 crore compared to Rs 5,064 crore in FY24. During the same period, the net losses were reduced to Rs 1,727 crore in FY25, down from Rs 1,996 crore the previous year.
Recent Revenue Updates
For the first half of the current fiscal year (H1FY26), PhonePe recorded revenues of Rs 3,918 crore, with losses amounting to Rs 1,442 crore. The revenue composition shows that the core payments business remains the primary contributor to the company’s income, though there is rapid growth in adjacent financial services such as lending, insurance distribution, and stockbroking, indicating a move towards broader diversification beyond pure UPI transactions.
Dominance in the UPI Ecosystem
PhonePe has consistently reinforced its leading position in the UPI ecosystem. In December, the company processed a remarkable 9.8 billion customer-initiated transactions, accumulating a total value of Rs 13.61 lakh crore, according to data from NPCI.