Walmart-backed fintech major PhonePe is targeting a valuation of $9 billion to $10.5 billion (about Rs 75,000 crore–Rs 87,000 crore) for its upcoming India IPO, with plans to raise around $1.05 billion through an equity sale, sources aware of the development told news agency PTI.The expected valuation is lower than the company’s last funding round in 2023, when PhonePe raised $100 million at a valuation of $12 billion.Even at the reduced valuation, the proposed public issue is expected to be the second-largest fintech IPO in India after rival Paytm, which listed at a valuation of about $20 billion (around Rs 1.4 lakh crore) in November 2021.The PhonePe IPO will be entirely an offer-for-sale (OFS) by existing shareholders.According to updated draft papers, shareholders including Walmart, Tiger Global and Microsoft Global Finance plan to offload stakes worth around Rs 10,115 crore, or about $1.1 billion, through the public issue.PhonePe promoter WM Digital Commerce Holdings Pte will sell 45,942,496 shares out of 371,517,890 shares, representing about a 12 per cent stake in the company through the OFS, priced at Rs 1,996.8 per share based on the weighted average cost of acquisition per equity share.Microsoft and Tiger Global are also planning to exit the firm through the IPO.PhonePe filed its draft papers for the IPO in September and expects to conclude the process by April, subject to favourable market conditions and the absence of major disruptions from the ongoing Middle East military conflict.The company has reported strong revenue growth and sharply narrowing losses over the past three fiscal years, according to its draft red herring prospectus (DRHP).Revenue from operations increased to Rs 7,114.85 crore in FY25 from Rs 2,914.28 crore in FY23, reflecting a compound annual growth rate (CAGR) of 56.25 per cent.PhonePe’s revenue mix has also diversified beyond core UPI payments.The contribution from merchant payments rose from 14.75 per cent in FY23 to 30.78 per cent by September 2025.Financial services, including lending and insurance distribution, expanded from 0.96 per cent in FY23 to 11.55 per cent in the first half of the current fiscal year.Merchant payments and financial services accounted for 42 per cent of the company’s revenue, highlighting growing monetisation across verticals.Losses have also narrowed significantly. Restated losses declined by more than Rs 1,060 crore between FY23 and FY25 to Rs 1,727.41 crore, with loss margins improving to (22.64) per cent from (90.68) per cent over the same period.The company achieved positive adjusted EBITDA in FY24 and FY25 and reported adjusted EBIT profitability in FY25. It also generated free cash flow of Rs 190.47 crore in FY25 and over Rs 250 crore in the six months ended September 30, 2024.Founded in 2016 and headquartered in India, PhonePe had over 65 crore registered users and a merchant network of more than 4.7 crore as of September 30, 2025.Its services span consumer and merchant payments, lending and insurance distribution, and newer platforms such as Share Market and Indus Appstore
