PhonePe Files Confidential IPO Papers with Sebi, Aims to Raise INR 12,000 Crore

Walmart-backed fintech giant PhonePe has filed its draft papers with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO). The company used the confidential pre-filing route, a method that allows companies to submit details privately before going public.

PhonePe confirmed that it has submitted the pre-filed Draft Red Herring Prospectus (PDRHP) with Sebi, BSE, and NSE under Chapter IIA of the Sebi ICDR Regulations, 2018. The company clarified that filing the PDRHP does not automatically mean it will go ahead with the IPO.

Industry reports suggest that the fintech major could raise around INR 12,000 crore (about $1.35 billion) through the offering. However, PhonePe has not yet disclosed the final size of the issue.

Why Confidential Filing?

The confidential route has become popular among Indian startups. It allows companies to keep financial details and strategy away from public view until they are ready to launch the IPO. Only regulators, stock exchanges, and select investors can access the information in the early stage.

PhonePe joins other startups like Groww, Physics Wallah, and Imagine Marketing (boAt) in taking this approach. The move highlights how maturing startups are preparing for public markets while maintaining flexibility.

PhonePe IPO Highlights

Strong Growth and Narrowing Losses

The filing comes after a strong financial year for PhonePe. The company reported a 40% year-on-year growth in revenue, reaching INR 7,115 crore in FY25, according to its filings with the Registrar of Companies (RoC).

PhonePe also turned free cash flow positive, with cash flow from operations at INR 1,202 crore in FY25. Its adjusted EBITDA, excluding ESOP costs, more than doubled to INR 1,477 crore from INR 652 crore a year earlier. Adjusted PAT rose to INR 630 crore, up from INR 197 crore in FY24. Importantly, the firm also posted its first positive adjusted EBIT of INR 117 crore.

Losses narrowed significantly during FY25. The company reported a net loss of INR 1,720 crore, compared with INR 1,996 crore in FY24.

PhonePe is one of India’s largest digital payment players. It has more than 600 million registered users and is accepted by 40 million merchants. The platform processes over 310 million transactions daily through the country’s Unified Payments Interface (UPI).

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Looking Ahead

The IPO, when launched, is expected to be one of the biggest from India’s fintech sector. Analysts say that PhonePe’s strong growth in revenue, improved profitability metrics, and massive user base position it as a strong candidate for public markets.

For now, the company has taken the first step with its confidential filing. Investors will watch closely as PhonePe decides when and how to move forward with the much-awaited IPO.

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