- By Shreyansh Mangla
- Wed, 24 Sep 2025 05:29 PM (IST)
- Source:JND
Walmart-Backed PhonePe: Walmart-backed fintech major PhonePe has filed draft papers with the capital markets regulator SEBI for a mega IPO via the confidential pre-filing route, aiming to raise around Rs 12,000 crore.
A PhonePe spokesperson told CNBC-TV18 that the company has filed the pre-filed Draft Red Herring Prospectus (PDRHP) with SEBI, BSE, and NSE in connection with the IPO, under Chapter IIA of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.
The spokesperson, however, clarified that the filing does not necessarily mean the IPO will be undertaken.
According to sources, the company is planning to raise about Rs 12,000 crore ($1.35 billion) through an offer-for-sale (OFS), with Walmart, Tiger Global, and Microsoft set to collectively offload an approximate 10per cent stake.
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Currently, Walmart owns 83.9per cent of PhonePe, while General Atlantic holds 5.14per cent .
Kotak Mahindra Capital, Citi, Morgan Stanley, and JP Morgan are the lead bankers for the issue, with Jefferies, Goldman Sachs, Axis Capital, and JM Financial also part of the syndicate.
When a company makes a confidential filing, details about the business are not released to the public, unlike the normal route where the entire draft red herring prospectus (DRHP) is publicly available as soon as it is filed with SEBI. This route was first introduced in November 2022.
In a regular filing, the approval is valid for 12 months after the market watchdog gives its final observations. In a confidential filing, this is valid for 18 months from the date of SEBI's observations on the confidential draft prospectus.
PhonePe also reported significant revenue growth in FY25, with its operating revenues growing 40.4 percent year-on-year to Rs 7,114.8 crore, compared to Rs 5,064.1 crore in FY24, according to RoC filings.
Although PhonePe's expenses climbed 21.1 percent to Rs 9,394 crore, its consolidated net loss was reduced by about 13 percent from the previous year. This indicates that its business is becoming more efficient and profitable as it grows.
PhonePe is also becoming free cash flow positive, generating approximately Rs 1,202 crore from its operations.
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A key measure of its operating profit, Adjusted EBITDA, more than doubled, and its adjusted PAT (Profit After Tax) jumped by a significant 220 percent. For the first time, the company also reported a positive profit after factoring in its main business costs.
These results were reported as PhonePe announced its listing plans. CEO Sameer Nigam said that its core payments business has reached maturity and market leadership, making the company ready for the accountability that comes with being a listed entity. He stated that the company hopes to remain stable and profitable in the years to come. "The business and the sector are in a good place," he added, noting that the company had intentionally moved its domicile to India with the intent to list locally.