After Groww, Phonepe Joins IPO Rush As It Files Documents For ₹12,000 Crore

Walmart-backed fintech company PhonePe has reportedly filed its draft initial public offering (IPO) documents via the confidential route with SEBI, BSE and NSE. The company is seeking to raise around ₹12,000 crore through an offer-for-sale (OFS) by its existing shareholders.

Under this pre-filing approach, the company can submit its Draft Red Herring Prospectus (DRHP) privately and solicit regulatory feedback before the public disclosure of sensitive financial information.

Walmart, Tiger Global, and Microsoft are expected to participate in the OFS and could reportedly result in a combined dilution of nearly 10%. PhonePe has engaged major investment banks, including Kotak Mahindra Capital, JPMorgan, Citigroup and Morgan Stanley, to manage the offering.

Financials In Focus

PhonePe's adjusted EBITDA (excluding ESOP costs) rose to ₹1,477 crore in FY25 from ₹652 crore a year earlier, while adjusted profit after taxes jumped to ₹630 crore from ₹197 crore.

The company also reported its first positive adjusted EBIT of ₹117 crore and turned cash flow from operations positive at ₹1,202 crore.

Last week, PhonePe received the final approval from the Reserve Bank of India (RBI) to operate as an online payment aggregator. This allows the company to expand its services to online merchants, with a focus on small and medium-sized enterprises (SMEs) across India.

Fintech IPO Buzz

This comes after India's leading stockbroking platform, Groww, reportedly filed a DRHP with SEBI, detailing capital-raising plans, promoter commitments, and early investor exits. Groww aims to raise about ₹7,000 crore, comprising ₹1,060 crore through fresh capital and ₹5,000 - ₹6,000 crore via an OFS.

Early investors, including Peak XV, Y Combinator, Ribbit Capital, and Tiger Global, are expected to participate in the share sale.

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