PhonePe, a digital payments network based in Bengaluru and supported by General Atlantic and Walmart, has submitted an updated Draft Red Herring Prospectus (UDRHP) to the Securities and Exchange Board of India (SEBI), a capital markets regulator, in order to acquire money through an initial public offering (IPO).
PhonePe IPO Details and Offer-for-Sale
💰 PhonePe IPO Offer-for-Sale Highlights
- Date: January 21, 2026 (UDRHP Filing)
- Total Shares on OFS: 5.06 crore equity shares
- Promoter Selling: WM Digital Commerce Holdings – 4.59 crore shares
- Other Sellers: Tiger Global & Microsoft
- IPO Type: Pure Offer-for-Sale (no fresh issue)
- Valuation: $15 billion approx.
📊 PhonePe Market Position & Investors
- Promoter Stake: WM Digital Commerce Holdings – 71.77%
- Largest Public Shareholder: General Atlantic – 8.98%
- Other Shareholders: Headstand – 5.73%
- IPO Proceeds: Entirely received by selling shareholders
- IPO Goal: Raise ₹12,000 crore ($1.35 billion) via OFS
According to the UDRHP filed on January 21, the IPO consists solely of an offer-for-sale of 5.06 crore equity shares by current shareholders, including promoter WM Digital Commerce Holdings, with no new issue component. Therefore, selling shareholders will receive the whole profits of the offer.
Wal-Mart International Holdings Inc.’s promoter WM Digital Commerce Holdings owns 71.77 percent of PhonePe. Offer-for-sale (OFS) sales of 4.59 crore shares, or 9.06 percent of total paid-up equity, are taking place.
Investor Details & Shareholding
Investors Tiger Global PIP 9-1 and Microsoft Global Finance Unlimited Company, an Irish subsidiary of Microsoft Corporation, will sell the remaining 47.17 lakh OFS shares.
With an 8.98 percent ownership, General Atlantic Singapore PPIL is the company’s largest public stakeholder. Headstand has a 5.73 percent stake.
Prior to this, Moneycontrol exclusively revealed that PhonePe, the market leader for UPI payments, is seeking to raise Rs 12,000 crore ($1.35 billion) through OFS at a valuation of over $15 billion.
Regulatory Approval & IPO Timeline
On January 20, the SEBI approved PhonePe’s confidential DRHP, opening the door for the company to file a UDRHP and then a RHP with the Registrar of Companies in order to begin an IPO. September 2025 saw the filing of the confidential DRHP.
PhonePe UPI Milestone
In August 2016, PhonePe became the first private non-bank company in India to introduce a UPI-based application following the Unified Payments Interface (UPI) debut in April 2016. According to NPCI data, it claimed to be the biggest digital payment platform in India in terms of both transaction volume and total payments value (TPV) for customer-initiated UPI transactions.
Financial Performance
In terms of finances, PhonePe reported a loss of Rs 1,444.4 crore for the six months that ended in September 2025, which is more than the loss of Rs 1,203.2 crore for the same period in the previous fiscal year. One 97 Communications, the parent company of digital payments and financial services platform Paytm, is PhonePe’s only listed competitor. During the same period, operating revenue increased from Rs 3,207.5 crore to Rs 3,918.5 crore, a 22.2% increase.
The loss decreased from Rs 1,996.1 crore in the previous year to Rs 1,727.4 crore in the fiscal year that ended in March 2025. Revenue increased from Rs 5,064.1 crore in FY24 to Rs 7,114.8 crore in FY25, a 40.5 percent increase.
Merchant Bankers
Kotak Mahindra Capital Company, JP Morgan India, Citigroup Global Markets India, Morgan Stanley India Company, Axis Capital, Goldman Sachs (India) Securities, Jefferies India, and JM Financial are the merchant bankers overseeing the PhonePe IPO.
Frequently Asked Questions
1. What kind of initial public offering is PhonePe initiating?
The total Offer for Sale (OFS) of 5.06 crore equity shares is PhonePe’s initial public offering (IPO). Since there is not a new issue, the company will not get any money from the IPO.
2. Which major owners are selling their shares?
By selling 4.59 crore shares, the promoter WM Digital Commerce Holdings (owned by Walmart) is lowering its ownership by roughly 9.06%. Microsoft Global Finance Unlimited Company and Tiger Global are two more sellers.
3. Will Microsoft and Tiger Global fully discontinue PhonePe?
Indeed. Microsoft and Tiger Global are completely withdrawing their investment in PhonePe through this IPO.
4. At what valuation and in what amount is PhonePe anticipated to raise?
According to previous estimates, PhonePe is anticipated to raise approximately ₹12,000 crore ($1.35 billion) through OFS, with an estimated worth of over $15 billion.
5. How did PhonePe’s finances perform prior to the IPO?
PhonePe is still losing money, although its revenue has increased significantly.
- FY25 loss (narrowed from FY24): ₹1,727.4 crore
- Revenue for FY25 was ₹7,114.8 crore, up 40.5% year over year.
- Loss for H1 FY26: ₹1,444.4 crore
- Revenue for H1 FY26: ₹3,918.5 crore
Conclusion
For the biggest UPI player in India, PhonePe’s refiling of IPO documents is a significant milestone. The IPO is obviously positioned as a liquidity event rather than a fund-raising exercise for development, with Walmart reducing its share and investors like Microsoft and Tiger Global pulling out.
Despite ongoing losses, PhonePe’s IPO is one of the most anticipated listings in India’s fintech industry due to its robust sales momentum and leadership in UPI transactions.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Readers are advised to consult a qualified financial advisor before making any investment decisions related to the PhonePe IPO.
