PhonePe, India’s payments champion, took a huge leap to go public. Fintech giant PhonePe filed its Draft Red Herring Prospectus (DRHP) with SEBI on September 24, 2025, under a confidential pre-filing mechanism, indicating a strong intention to go for an IPO.
What Is The Confidential Route?
Using SEBI’s confidential IPO route allows companies to submit documents privately first—before deciding whether to go public. PhonePe has utilised this mechanism under Chapter IIA of SEBI’s issue regulations. It helps shield sensitive information from public view while the company finalises strategy, valuation, and timing.
Financials & Growth
In FY25, PhonePe reported revenue growth of ~40% year-on-year, reaching approximately ₹7,115 crore.
ETBFSI.com
The firm also logged its first-ever positive adjusted EBIT (excluding ESOP costs) of approximately ₹117 crore. Losses have come down dramatically.
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IPO Details Under Speculation
Though official figures can change, reports indicate:
The size of the IPO can be ₹12,000 crore (approximately $1.35 billion) through an Offer for Sale (OFS), where existing investors such as Walmart, Tiger Global, and Microsoft could be participating.
Moneycontrol
Approximately 10% equity would be listed through this issue.
Valuation estimates are range-bound between $7 and $8 billion, placing PhonePe in India’s list of most valuable fintech companies.
Why PhonePe Went the Route of Confidential Filing
The confidential path has a number of benefits:
Flexibility—Enables PhonePe to postpone the ultimate public filing if circumstances aren’t right.
Secrecy over Strategy—Prevents valuations, investor demand, and internal metrics from going public until the company is ready.
Market Timing—Let PhonePe wait for market and regulatory sentiment before going in for formal numbers.
A few other Indian firms have taken this path—like Swiggy, Groww, and Physics Wallah—pointing towards an increasing trend in the country’s IPO market.
Investors: Early birds can gain, but until the RHP (Red Herring Prospectus) is out, there is risk.
Employees & ESOP Holders: Enhanced earnings and reduced losses may result in enhanced valuation and liquidity.
Competitors: PhonePe’s solid financials and growth may compel competitors to speed up plans.
Regulators & Markets: Open reporting and adhering to rules will be essential to uphold faith once confidential filings are made.
The Road Ahead
The filing of the DRHP does not automatically mean that PhonePe will list immediately. SEBI approvals, market conditions, and investor appetite will all play a role in making the final call. But with solid fundamentals, rising margins, and making this journey through this anonymous route, PhonePe is in a good position—or at least ready to make a splash when it finally does.
Watch for the eventual RHP, price band revelation, and listing date—these will indicate if PhonePe’s aggressive IPO plans will materialise in a market that is upbeat or get reconsidered if volatility or policy issues get in the way.
Summary
PhonePe’s confidential SEBI filing is an unmistakable sign of plans to go public in the near future, underpinned by robust financial growth and declining losses. Valuation expectations are strong, the OFS strategy indicates that existing investors will be involved, and the confidential method earns PhonePe precious time in a changing market.
The action may remake India’s fintech IPO landscape—and investors will be paying close attention.
