India’s Fintech Giant Is Going Public: Here’s Why It Matters
PhonePe, one of India’s most dominant digital payment platforms, is heading for an Initial Public Offering (IPO) in 2026 – and it’s already shaping up to be one of the most talked-about listings in recent memory.
With over 657 million users and 47 million merchants, PhonePe commands a massive 45% share of all UPI transactions. Such scale makes the company’s planned initial public offering (IPO) one of the most anticipated events on the Indian capital markets calendar.
Quick Overview of the PhonePe IPO
| IPO Detail | Info |
|---|---|
| Type | 100% Offer-for-Sale (OFS) |
| Shares on Offer | Approx. 5.06 crore (50.7 million shares) |
| Estimated Issue Size | ₹12,000 crore (~US$1.5 billion) |
| Listing Exchanges | NSE and BSE |
| Bidding Dates | To be announced (likely Q1 2026) |
| Price Band | To be announced |
| Lead Managers | Kotak Mahindra, JPMorgan, Citigroup, Morgan Stanley |
Who Owns PhonePe Today?
PhonePe began as part of Flipkart and is still majority-owned by Walmart via its subsidiary WM Digital Commerce (about 72%). Its founders; Sameer Nigam (CEO), Rahul Chari (CTO) and Burzin Engineer, continue to lead the businessOther major investors include:
- Microsoft Global Finance
- Tiger Global
- General Atlantic
- Qatar Investment Authority
As part of IPO preparations, PhonePe moved its headquarters from Singapore to India in 2022 – a clear signal of its long-term commitment to the Indian market.
What Does PhonePe Actually Do?
While UPI payments are its core offering, PhonePe has grown into a full-fledged fintech giant with multiple offerings. Here’s what you can find:
- Bill payment, money transfer, shop in-store
- Buy mutual funds, gold, and insurance
- Get personal loans and credit cards
- Share.Market – a stockbroking and wealth management platform launched in 2023. It lets users trade stocks, ETFs and mutual funds directly from the PhonePe app, integrating investing into its payments ecosystem.
- Indus Appstore – an Android app marketplace unveiled in February 2024. It offers app discovery in 12 Indian languages and allows developers to use any third‑party payment gateways. Indus aims to challenge global incumbents by offering a localized store and zero listing fees. An India-first alternative to Google Play
- Pincode – a hyper‑local commerce app launched in 2023. In December 2025 PhonePe announced it would pivot Pincode to focus solely on B2B solutions for offline merchants and wind down the consumer quick‑commerce operation. The pivot emphasises providing inventory management, order management and direct‑sourcing tools to shopkeepers.
Financial Performance and Valuation
PhonePe’s numbers show strong revenue growth, but it’s still posting losses:
- FY 2024–25 Revenue: ₹7,115 crore (up 40% YoY)
- Net Loss: ₹1,727 crore (vs ₹1,996 crore the year before)
- Private Valuation (2025): ~US$14.5 billion
The IPO is expected to value PhonePe between $14–15 billion, putting it among India’s largest fintech listings.
Who’s Selling in the IPO?
Since this is a pure Offer-for-Sale, here’s who plans to cash out:
- Walmart: Selling ~4.59 crore shares (~9% of the company)
- Microsoft: Selling 36.8 lakh shares (full exit)
- Tiger Global: Selling 10.39 lakh shares (full exit)
Other investors like General Atlantic and QIA are not selling at this time.
Strengths That Make PhonePe Stand Out
- Massive UPI dominance (45%+ market share)
- 657 million users and billions of monthly transactions
- Diversified fintech ecosystem (payments, loans, wealth, app store)
- Strong global backers like Walmart, Microsoft, and Tencent
- Regulatory support and digital payment tailwinds
Key Risks to Consider
- Still loss-making, though narrowing
- No fresh capital — IPO proceeds don’t fund future growth
- Heavy competition from Google Pay, Paytm, Amazon Pay
- Regulatory uncertainty around UPI fees and data privacy
- Security risks with handling billions of transactions
How to Apply for the PhonePe IPO
Once bidding opens, here’s the process:
- Log in to your demat account (e.g., Lemonn, Groww)
- Go to the IPO section
- Choose PhonePe IPO
- Enter your price/lots or select “Cut-off”
- Enter your UPI ID
- Approve the mandate request
Funds are blocked until allotment. If you get the shares, money is debited; if not, it’s released.
Final Thoughts: Is PhonePe IPO Worth It?
PhonePe combines scale, brand recognition, and product diversity in one of the world’s fastest-growing fintech markets. It’s a bet on India’s digital future – but like many tech IPOs, it comes with risks.
If you’re considering investing:
- Weigh the fact that it’s a shareholder exit, not a growth fundraise
- Understand it’s still not profitable
- Recognize the long-term potential of a UPI giant in India’s digital economy
Stay tuned for the official price band and dates. This could be a landmark IPO – but as always, invest based on your risk appetite and financial goals.
Key Takeaways
- PhonePe IPO is one of India’s most anticipated tech listings
- 657M users, 45% UPI market share, and growing financial ecosystem
- IPO is a shareholder exit — not a capital-raising event
- Strong potential, but losses and market risks remain
FAQs About the PhonePe IPO
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When will the PhonePe IPO open?
Expected in Q1 2026, subject to market conditions. Exact dates are TBD.
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What’s the expected valuation?
Around US$14–15 billion, with an issue size of ₹12,000 crore.
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Is it a fresh issue?
No. It’s a 100% Offer-for-Sale — existing investors are selling.
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Is PhonePe profitable?
Not yet. Net losses are narrowing, and core operations are close to break-even excluding ESOPs.
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How do I apply for IPO?
Through your broker’s IPO section using UPI or ASBA.
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How can I pre-apply for the PhonePe IPO?
You can pre-apply for PhonePe IPO using Lemonn’s Pre-Apply feature, which lets you place your IPO request prior to the official bidding date.
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What is ‘Pre-Apply for IPO‘ on Lemonn?
Pre-Apply on Lemonn is a feature that allows you to submit your IPO application before the IPO opens, so your request is already queued when the subscription window begins.
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Where will the shares be listed?
PhonePe’s DRHP indicates that the shares will list on India’s two main exchanges; BSE and NSE. The listing date will be set after allotment.
