PhonePe Files for IPO via Confidential Route, Targeting ₹120B Raise

PhonePe Moves to Go Public via Confidential Route

Walmart-backed Indian fintech firm PhonePe has submitted paperwork for an initial public offering (IPO) via the confidential route, the company confirmed on Wednesday. According to sources, the planned IPO aims to raise approximately ₹120 billion (around USD 1.35 billion).

The confidential or “closed door” filing process allows the company to prepare its Draft Red Herring Prospectus (DRHP) privately without immediate public disclosure, giving it flexibility ahead of a full launch.

Strong Topline Growth, Narrowing Losses

In its filing, PhonePe disclosed that in the fiscal year ending March 2025, it cut its net losses to ₹17.2 billion from ₹19.96 billion in the prior year.

Meanwhile, revenue from operations jumped about 40 percent to ₹71.15 billion in FY25.

These figures reflect improving financial health ahead of the anticipated public listing.

Business Reach & Market Position

PhonePe operates extensively in India’s payments space, leveraging the Unified Payments Interface (UPI). It has over 600 million registered users, supports 40 million merchants, and processes more than 310 million online transactions daily.

Its broad user base and merchant network position it as one of India’s dominant digital payments platforms.

Risks & Strategic Challenges

While the metrics are improving, the planned IPO carries several risk factors. Market conditions may fluctuate, valuations can be volatile, and regulatory scrutiny in India’s financial and fintech sectors remains a key concern.

Additionally, operating via a confidential route reduces early-market transparency, which may raise investor caution until full disclosures are made public.

Outlook & Implications

If successful, the IPO would mark one of the marquee fintech listings in India, offering investors exposure to the fast-growing payments and financial services ecosystem.

Investors and analysts will watch closely for the final valuation, share dilution, underwriter roster, and how PhonePe positions itself among other fintech peers.

Restating the Core Theme

PhonePe, backed by Walmart, has initiated a confidential IPO filing targeting ~₹120 billion, riding momentum from strong revenue growth and improved financials. The move underscores its ambition to transition from a private fintech leader into a public market contender in India’s digital finance space.