PhonePe files confidential IPO papers with SEBI, to raise ₹12,000 crore via OFS, says report; check financials

The digital payments and financial services company is seeking to raise ₹12,000 crore exclusively through an offer for sale (OFS) component.

Under the OFS, Tiger Global, Walmart, and Microsoft could dilute a combined stake of around 10%, the report said.

The company had appointed JP Morgan, Morgan Stanley, Kotak Mahindra Capital, and Citi as advisors for its IPO in February this year.

Last week, PhonePe received final authorisation from the Reserve Bank of India, or RBI, to operate as an online payment aggregator.

With the RBI's authorisation, the fintech giant will be able to expand its reach and tap into online merchants, with a key focus on small and medium businesses (SMEs) across India, according to a release.

Yuvraj Singh Shekhawat, Chief Business Officer (CBO) Merchant Business at PhonePe, said, "With this authorisation, PhonePe is well-positioned to accelerate financial inclusion by providing accessible payment solutions to businesses that were previously underserved, particularly in the SME segment."

PhonePe IPO: A look at financials

The digital payments platform reported a narrowing of its consolidated losses to ₹1,727.4 crore in the financial year 2024-25 versus ₹1,996.1 crore in FY24.

Its revenue from operations advanced 40.5% to ₹7,115 crore in FY25 as against ₹5,064 crore a year back, PTI reported, citing data accessed from Tofler.

PhonePe recorded a threefold growth in its adjusted profit after tax to ₹630 crore in the financial year ending March 31, 2025, from ₹197 crore in the previous year.

The Walmart group company turned free cash flow positive in the fiscal year 2025, with net cash flow from operations reaching ₹1,202 crore.

The company's total expenses rose 21% year-on-year (YoY) to ₹9,394 crore in FY25.