IPO-bound PhonePe targets growth in payments, merchants, new platforms

Walmart-supported PhonePe, preparing to launch its initial public offering (IPO) by April, intends to strengthen its dominance in India’s digital payments sector while venturing into financial services and consumer-oriented platforms.

The company’s draft documents state that digital payments will continue as its primary growth engine, fueled by investments to grow its customer reach, serviceable markets, and platform capabilities.

Citing market projections, PhonePe noted India’s digital consumer payments market stood at ₹301 lakh crore in FY25 and is expected to nearly double to ₹602–681 lakh crore by FY30.

Sources indicate the fintech firm targets an April IPO timeline. The offering will comprise a 5.06 crore-share sell-down by existing investors Walmart, Microsoft, and Tiger Global without issuing new equity.

After confidentially submitting paperwork in September, PhonePe secured approval from India’s Securities and Exchange Board (SEBI) in January for its public debut.

To broaden its user acquisition strategy, PhonePe will intensify focus on both smartphone and feature phone ecosystems. Industry estimates project India’s smartphone users to surge from 69–70 crore in FY25 to 96–108 crore by FY30, alongside 20–30 crore feature phone users.

PhonePe acquired Gupshup’s GSPay technology in June 2025 to enable UPI transactions on feature phones. Future development plans include facilitating credit services via UPI, integrated transit payments across transportation networks, and payments through smart home/vehicle devices.

As of March 2025, PhonePe served over 29 crore monthly active users—covering about 42% of India’s smartphone base—indicating substantial room for further expansion.

For merchant services, PhonePe aims to accelerate digital payment adoption in a market where penetration lags behind global counterparts. Only 45% of Indian merchants used digital payments in FY25 versus 93% in China, per RedSeer data.

Merchant digital payment volumes reached ₹112 lakh crore in FY25 and could expand at 20–22% CAGR through FY30, aided by government programs like the Payments Infrastructure Development Fund.

India hosts approximately 5.7 crore micro-merchants, 35,000 mid-market businesses, and over 20,000 enterprises. Despite this, just 1.11 crore merchants transact monthly on PhonePe (67.5 lakh daily), underscoring untapped potential.

The company is expanding its financial services portfolio—including lending and insurance products—while diversifying revenue through new ventures like Share.Market (investment platform) and the Indus Appstore (native Android app marketplace).

Financially, PhonePe reported FY25 revenue growth of 40% YoY to ₹7,115 crore, with adjusted net profit soaring past ₹630 crore.

Published on February 8, 2026