PhonePe Poised for IPO: A New Wave in Fintech

Digital payments provider PhonePe has filed draft papers for a confidential IPO, indicating increased flexibility in public offerings. With backing from industry giants and a significant rise in revenue, PhonePe aims to expand its diverse portfolio. The move highlights a trend among Indian firms opting for confidential filings.

PhonePe, a leading digital payment service provider, has initiated steps towards an initial public offering (IPO) by submitting draft documents with the Securities and Exchange Board of India (Sebi) under the confidential pre-filing framework.

According to a spokesperson for PhonePe, the company filed a Pre-filed Draft Red Herring Prospectus with Sebi, in alignment with the Sebi ICDR Regulations. However, specifics regarding the IPO's size remain undisclosed. Key financial players like Kotak Mahindra Capital, JPMorgan Chase, Citigroup, and Morgan Stanley have been enlisted to support the public offering.

In fiscal year 2023, PhonePe attracted investments amounting to ₹7,021 crore (around USD 850 million) at a valuation of USD 12 billion. The firm showcased financial recovery by reducing consolidated losses in FY25 and witnessed a 40.5% increase in revenue. PhonePe's expansion strategy includes offerings in insurance, lending, and wealth management, in addition to launching new tech ventures.

(With inputs from agencies.)