PhonePe files confidential DRHP with SEBI for Rs 12,000 Cr IPO

Walmart-owned fintech giant PhonePe has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) through the confidential route, setting the stage for one of the most anticipated IPOs in the Indian tech space.

The Bengaluru-based firm has taken advantage of SEBI’s confidential filing mechanism, introduced last year, which allows companies to keep sensitive financial and strategic details under wraps until closer to listing.

The company is reportedly looking to raise Rs 12,000 crore through its IPO. According to a Moneycontrol report, the issue will be a pure OFS (offer for sale) in which Walmart, Microsoft, and Tiger Global will dilute their holdings.

PhonePe has also picked Kotak Mahindra Capital, Citi, Morgan Stanley, and JP Morgan as its investment bankers for the $15 billion valuation in the initial public offering.

With its payments backbone, insurance, mutual funds, and lending bets, PhonePe is a full-stack financial services platform. The IPO will provide not only an exit opportunity for investors but also fresh firepower for the company to scale its credit and wealth businesses.

PhonePe registered 40.5% year-on-year growth in revenue, which rose to Rs 7,115 crore in FY25 from Rs 5,064 crore in FY24. During the same period, its adjusted profit (excluding ESOP costs) grew 5X to Rs 630 crore, up from Rs 117 crore in FY24. According to NPCI data, PhonePe held a 45.74% share of the digital payments market by volume and 48.26% by value as of August.

By opting for the confidential DRHP route, PhonePe has joined several companies, such as Meesho, Shadowfax, Physics Wallah, Groww, Shiprocket, boAt, and Aequs, that have filed confidential DRHPs as they move towards the public markets.