PhonePe Takes Major Step Toward IPO, Files Confidential Draft Papers with SEBI
Mumbai: PhonePe, the fintech company backed by global retail giant Walmart, has taken a significant step toward going public. According to Reuters, PhonePe has confidentially filed its draft papers for an Initial Public Offering (IPO) with SEBI (Securities and Exchange Board of India).
Reports suggest that the IPO could be worth around Rs 1,200 crore (approximately $1.35 billion). The company has used the confidential pre-filing route, which allows businesses to keep IPO details private until closer to the listing date.
What Is a Confidential IPO Filing?
The confidential IPO filing route enables companies to file their Draft Red Herring Prospectus (DRHP) without immediately disclosing information to the public. This approach provides flexibility, allowing firms to delay or even cancel the IPO if market conditions prove unfavorable.
Financial Performance: Losses Reduce, Revenue Grows Strongly
PhonePe recently released its financial results for the fiscal year ending 2025. The company reported a net loss of Rs 1,720 crore, down from Rs 1,996 crore in the previous year. Meanwhile, its revenue from operations increased by a robust 40%, reaching Rs 7,115 crore.
These figures indicate that PhonePe is making steady progress toward profitability, strengthening its position in the competitive fintech market.
Massive User Base and High Transaction Volume
PhonePe is one of India’s most widely used digital payment apps, boasting over 600 million registered users, including more than 4 million merchants. The platform processes approximately 310 million transactions daily, underscoring its role as a major player in the Indian digital payments space.
Earlier this year, PhonePe announced its plans to go public and list on the Indian stock market, making its IPO highly anticipated.
RBI Approval as Payment Aggregator Bolsters Growth Prospects
Adding to its credentials, PhonePe recently received approval from the Reserve Bank of India (RBI) to operate as an online payment aggregator. This license permits the company to process payments on behalf of other businesses, enhancing its long-term growth potential.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a licensed financial advisor before making any investment or IPO-related decisions.