IPO-bound PhonePe, India’s largest digital payments and financial services platform, has raised $600 million (₹5,304 crore) from its existing investor General Atlantic in a secondary transaction at a $14.5 billion valuation. This marks a 16% premium over its prior fundraising round at $12.5 billion. GA’s latest infusion brings its total investment in PhonePe to $1.15 billion, increasing its stake from 4.4% to 9%. The move comes as PhonePe finalizes its confidential DRHP and gears up for its long-awaited public listing in early 2026.
Offer Snapshot
- Latest funding: $600 million from General Atlantic (secondary transaction, no new shares issued)
- PhonePe’s total fundraising: ~$1.6 billion across four major rounds since 2023
- Pre-IPO valuation: $14.5 billion (₹1,20,000 crore)
- Existing investors: Majority held by Walmart (>70%), with minority stakes by Tiger Global, Ribbit Capital, General Atlantic, Microsoft, and others
- PhonePe has confidentially filed its DRHP with SEBI and targets an IPO of ₹12,000 crore ($1.5 billion) through an Offer for Sale, with select investors expected to partially exit
Financials
- Revenue for FY25: ₹7,115 crore, up 40% YoY
- Free cash flow positive: ₹1,202 crore generated from operations in FY25
- Payments segment: ~95% of revenue, with emerging verticals in credit, insurance, wealth, and ONDC-driven commerce
- Registered users: 600 million+; Market share: >47% of UPI transactions volume/value
Business Highlights
- Diversified into insurance, lending, stockbroking, and ONDC commerce alongside its UPI payments leadership
- Spun off from Flipkart in 2020, relocated its domicile to India, and is now a standalone business
- Record UPI transaction volume solidifies PhonePe’s dominant market position
- The latest financing round helps PhonePe’s employees fulfil tax obligations from ESOP exercises ahead of the IPO
Use of Proceeds
- Proceeds from the current funding round (secondary) go to General Atlantic
- IPO proceeds (planned ₹12,000 crore) will partially support strategic expansion, investor exits, and listing initiatives
Risks
- Reliance on UPI for revenue may expose PhonePe to regulatory changes and payment ecosystem shifts
- Success of newer segments (insurance, lending, wealth, ONDC) needed for long-term growth
- High competitive intensity from Paytm, Google Pay, Amazon Pay, and emerging fintechs
- Market valuation and sentiment at the time of listing will impact post-IPO performance
What to Watch Next
- IPO launch window finalization—expected by early 2026
- Final offer structure, price band, and investor participation details in the public DRHP
- How much stake Walmart, Tiger Global, and other major shareholders will offload
- Strategic moves beyond payments to diversify revenue and sustain growth
FAQs
Q1: How much did PhonePe raise from General Atlantic and at what valuation?
$600 million, valuing the company at $14.5 billion ahead of its IPO.
Q2: Is this a primary or secondary transaction?
It is a secondary transaction, not new shares; proceeds go largely to General Atlantic.
Q3: Has PhonePe’s IPO DRHP been filed?
Yes, PhonePe has filed confidential DRHP papers with SEBI, aiming for a ₹12,000 crore offer for sale in IPO.
Q4: What are PhonePe’s financial highlights?
FY25 revenue reached ₹7,115 crore; company became free cash flow positive with ₹1,202 crore generated from operations and leads UPI market share.
Q5: Who will sell shares in the IPO?
Major shareholders including Walmart, Microsoft, Tiger Global, and others are expected to participate in the offer for sale, with select investors partially or fully exiting.