PhonePe Eyes to Raise $1.5 Billion through IPO

June 24, 2025

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Why in the news?

PhonePe, India’s leading digital payments platform and a subsidiary of Walmart Inc., is reportedly preparing for an initial public offering (IPO) to raise up to $1.5 billion, potentially valuing the company at around $15 billion, according to Bloomberg.

The fintech organisation aims to submit its draft red herring prospectus — a preliminary filing required by Indian regulators — by August.

It is also reported that PhonePe has enlisted top investment banks, including Kotak Mahindra Capital, JPMorgan Chase, Citigroup, and Morgan Stanley, to manage the process.

PhonePe’s Vision

Whether buying a chocolate or finally checking out that expensive dress from your wishlist, chances are you’ll be using a QR scanner — a reflection of how online payment gateways have become a part of everyday life.

At the heart of this digital transformation is PhonePe.

Founded in December 2015 by Sameer Nigam, Rahul Chari, and Burzin Engineer, PhonePe set out with a simple mission: to make digital payments easy and accessible for every Indian using UPI (Unified Payments Interface).

Its vision is clear — “to build India’s largest transaction platform anchored on payments, a scalable ecosystem that creates maximum positive impact for all stakeholders.”

PhonePe’s Journey

Launched in 2016, PhonePe was the first app in India to offer UPI-based payments.

Its growth accelerated during the 2016 demonetization, when digital transactions saw a sharp rise. Backed initially by Flipkart and later acquired by Walmart, PhonePe expanded rapidly across metro cities and smaller towns, thanks to its smooth user experience and early-mover advantage.

PhonePe has since evolved into more than just a payments app. It now offers a wide range of services — from bill payments and mobile recharges to insurance, gold purchases, and mutual fund investments.

Within a few years, it emerged as India’s top consumer payments platform.

In March 2025, UPI transactions in India hit a record ₹24.77 lakh crore, with PhonePe leading the market. By May 2025, it had processed 8.68 billion UPI transactions, reaffirming its dominance in the digital payments space.

As PhonePe gears up for its much-anticipated IPO, it stands as a symbol of India’s fintech revolution — a homegrown success story that not only changed the way India pays but also paved the way for the future of digital finance.

Credit for header image: Dutch Uncles
[This content is for informational purposes only and does not constitute legal, financial, or investment advice. This has been constituted based on third-party sources. We do not assume any liability for actions taken based on this information.]