PhonePe’s Mega IPO Move
Walmart-backed fintech giant PhonePe has taken a significant step towards the capital markets by filing draft papers with the Securities and Exchange Board of India (SEBI). The filing has been made under the confidential pre-filing route, an option that allows companies to prepare for listing while keeping sensitive details shielded until the right time.
₹12,000 Crore Target Through Offer for Sale
According to sources familiar with the matter, PhonePe plans to raise around ₹12,000 crore through an Offer for Sale (OFS). This method will allow existing investors, including its parent Walmart, to dilute their stakes while creating room for new institutional and retail investors.
Why Confidential Pre-Filing?
The confidential pre-filing route, introduced by SEBI in 2022, is increasingly becoming popular among large companies. It provides issuers flexibility to:
- Fine-tune offer size and structure before public disclosure
- Gauge investor appetite without market pressure
- Ensure compliance and address regulatory queries privately
Financial Performance: Signs of Stability
PhonePe recently reported its first positive adjusted EBIT of ₹117 crore (excluding ESOP costs) for FY25, alongside a sharp revenue rise of nearly 40%. Its net loss narrowed to ₹1,727 crore from ₹1,996 crore in FY24. This momentum strengthens the case for its upcoming IPO.
Market Significance
The IPO is expected to be among India’s largest fintech listings, putting PhonePe in the league of top homegrown startups going public. Analysts believe the listing will:
- Set fresh benchmarks for fintech valuations in India
- Boost investor confidence in the payments and financial services sector
- Offer a clearer picture of Walmart’s long-term India strategy
What’s Next?
Once SEBI clears the draft, PhonePe is likely to proceed with roadshows and finalize pricing. Market watchers expect strong demand, given PhonePe’s leadership in UPI transactions and its expanding portfolio across insurance, lending, and stock broking.
