PhonePe plans $1.5Bn IPO to boost FinTech expansion

By Vriti Gothi

PhonePe, a digital payments and financial services platform, plans to file a Draft Red Herring Prospectus (DRHP) as early as August 2025.

According to sources, the proposed Initial Public Offering (IPO) aims to raise up to $1.5 billion, potentially valuing the FinTech at approximately $15 billion.

Founded in 2015, PhonePe has grown into a platform with over 610 million registered users, processing $3.92 million in daily transactions, and delivering a comprehensive suite of financial services designed for Bharat’s rapidly digitising economy.

At the core of PhonePe’s platform is a digital architecture that integrates payments, banking, insurance, lending, and investment services, all in a secure, user-centric experience. Its cloud-native infrastructure and API-driven ecosystem enable high scalability, feature deployment, and personalisation across urban and rural markets.

From QR-based micro-transactions to mutual fund investments and insurance solutions, the platform serves as a digital financial hub for individuals, small businesses, and merchants alike.

PhonePe’s upcoming IPO builds on strong investor confidence. In 2023, the company raised $100 million in funding from Ribbit Capital, Tiger Global Management, and TVS Capital Funds, placing its valuation at $12 billion. The IPO will further bolster its capital base as it expands its footprint across financial services, digital commerce, and emerging technologies such as AI-driven credit scoring and voice-enabled transactions.

To manage the listing, PhonePe has engaged Kotak Mahindra Capital Co., JPMorgan Chase & Co., Citigroup Inc., and Morgan Stanley as lead managers, signalling strong institutional support and global market interest.

With this IPO, PhonePe is charting the future of how digital financial ecosystems can drive inclusive, scalable, and sustainable economic growth.