Stocks
Invest in Stocks
Invest in stocks, ETFs, IPOs with fast orders. Track returns on your stock holdings and view real-time P&L on your positions.
F&O
Mutual Funds
Invest in Mutual Funds
Invest in direct mutual funds at zero charges via lump sump investments or SIPs
PhonePe IPO
PhonePe
PhonePe IPO Details
| Bidding dates | Minimum investment | Lot size | Price range |
|---|---|---|---|
| To be announced | -- | -- | -- |
| Issue size | IPO doc | ||
|---|---|---|---|
| -- | DRHP PDF |
| Face value |
|---|
| 1 |
About PhonePe
Founded in
2015
MD/CEO
Sameer Nigam
Parent organisation
PhonePe
PhonePe IPO
https://www.youtube.com/watch?v=zxuukWMDDZ0
Strengths & Risks of PhonePe
Highlights
Deep dive
Dominant 49.15% UPI TPV market share leadership
Revenue grew at 56.25% CAGR to ₹7,114.86 Crores
Achieved positive Adjusted EBITDA of ₹1,477.19 Crores
History of significant losses, ₹1,727.41 Crores in FY25
Faces 30% UPI volume cap with 46.85% market share
Faces pending tax litigations involving ₹24.95 Crores
Phonepe is leveraging its dominant position in India's digital payments to rapidly scale into high-margin financial services and new platform ventures. However, its growth is threatened by a heavy reliance on the payments business and a looming regulatory cap on its core UPI market share.
Strengths
Risks
The company is the market leader in India's digital payments ecosystem, holding a 49.15% market share of UPI TPV for customer-initiated transactions as of September 2025. This market leadership has been sustained for 58 consecutive months and has translated into strong financial growth, with Total Payment Value (TPV) on its platform growing from ₹69.55 lakh Crores in FY23 to ₹132.70 lakh Crores in FY25.
PhonePe has demonstrated rapid revenue growth and strategic diversification, with revenue from operations growing at a CAGR of 56.25% from ₹2,914.29 Crores in FY23 to ₹7,114.86 Crores in FY25. This growth is supported by a successful diversification strategy, which saw the revenue contribution from Merchant Payments increase from 14.75% to 27.99% and from Lending & Insurance services from 0.96% to 7.84% over the same period.
The company possesses a massive and deeply engaged user base, with 65.76 Crore life-till-date registered users and 4.72 Crore merchants as of September 2025. This scale is reflected in its customer activity metrics, which show a 31.48% CAGR in Daily Active Customers from FY23 to FY25, indicating strong platform stickiness and growing user engagement.
PhonePe has shown significant improvement in profitability, with its restated loss narrowing from ₹2,796.07 Crores in FY23 to ₹1,727.41 Crores in FY25. More significantly, key operational metrics have turned positive, with the company achieving an Adjusted EBITDA of ₹1,477.19 Crores and generating free cash of ₹190.48 Crores in FY25, indicating a strong path towards sustainable profitability.
The company operates a proprietary, in-house technology stack and self-managed infrastructure, a key differentiator in the commoditized payments market. It has invested ₹3,373 Crores in this infrastructure since 2016, which enables greater control over reliability, scalability, security, and cost-efficiency while ensuring 100% data residency in India.
The company has built a highly trusted brand, demonstrated by being India's most downloaded Android finance app with the highest Daily Active Users of 15.6 Crores in H1FY26. This brand trust translates into strong customer retention, with 99.23% of daily customers returning to the platform within 30 days as of September 2025.
The company is successfully executing its diversification strategy into new high-growth areas like wealth management and app distribution. Its Share.Market platform has already opened 1.26 million demat accounts and manages an AUM of ₹5,838 Crores, while its Indus Appstore has secured partnerships with major OEMs like Xiaomi and Motorola to be pre-installed on their smartphones.
PhonePe is backed by strong promoters, WM Digital Commerce Holdings Pte. Ltd. and Wal-Mart International Holdings, Inc., part of the Walmart group. WM Digital holds 71.77% of the pre-offer equity, providing significant financial backing, strategic oversight, and robust corporate governance standards.
The company has a history of significant net losses, recording a loss of ₹1,727.41 Crores in FY25 and ₹1,996.17 Crores in FY24. While losses are narrowing, the company also reported negative cash flows from operating activities of ₹117.27 Crores for the six months ended September 30, 2025, indicating continued cash burn to fund operations and growth.
The business is heavily dependent on its payment services, which accounted for 86.92% of its revenue from operations in the six months ended September 30, 2025, down from 97.66% in FY23. Any downturn in customer willingness to use these services, regulatory changes, or increased competition could materially impact its financial results.
A significant regulatory risk arises from the NPCI's proposed 30% volume cap on UPI transactions for any single Third-Party App Provider (TPAP), which has been deferred until December 31, 2026. With a UPI volume market share of 46.85% as of September 2025, enforcement of this cap could severely impact the company's ability to onboard new users and its overall growth trajectory.
The company's operations are critically dependent on its three sponsor Payment System Provider (PSP) banks: Yes Bank, Axis Bank, and ICICI Bank. Any disruption, failure, change in commercial terms, or operational breakdown with these banks could adversely affect business, as exemplified by the temporary stoppage of its UPI services during the Yes Bank moratorium in March 2020.
The company faces rising payment processing charges, which as a percentage of total expenses, increased from 11.29% in FY23 to 17.97% in FY25. Any significant future increase in these charges by financial institutions, if unable to be passed on to merchants or consumers, could decrease margins and profitability.
The company and its directors are involved in material pending litigations, including 10 tax proceedings against the company with an aggregate amount of ₹24.95 Crores. An adverse outcome in these or other legal matters could lead to significant financial liabilities and reputational damage.
As a large digital platform processing vast amounts of sensitive user data, the company is vulnerable to cybersecurity risks. The recent implementation of India's Digital Personal Data Protection (DPDP) Act introduces significant compliance obligations and potential penalties of up to ₹250 Crores for data breaches, heightening the financial and reputational risk.
PhonePe Financials
*All values are in Rs. Cr
No Graph Data To Display