PhonePe IPO: Firm submits confidential papers to Sebi; details, timeline & investors
PhonePe has confidentially filed draft IPO papers with SEBI. the confidential route is significant as it allows the Walmart-backed digital payments giant to traise fund and impressive revenue growth despite reduced losses.
New Delhi: PhonePe IPO to launch soon! The digital payments provider has filed draft papers with markets regulator Securities and Exchange Board of India (Sebi) using the confidential pre-filing route for its upcoming initial public offering (IPO).
Speaking to media, PhonePe spokesperson confirmed that the digital payments provider has filed the Pre-filed Draft Red Herring Prospectus with Sebi.
"PhonePe Ltd has filed the Pre-filed Draft Red Herring Prospectus with Sebi and the stock exchanges, under...the Sebi ICDR Regulations in relation to the proposed initial public offering of its equity shares on the main board of the stock exchanges,” the company's spokesperson said.
The PhonePe declined to comment on details of the IPO size.
PhonePe Financial Performance and Growth Trajectory
The digital payments service provider digital payment service provider has reportedly signed a deal with JPMorgan Chase, Citigroup, Morgan Stanley, and Kotak Mahindra Capital to assist in the public offering.
PhonePe is a Walmart group firm. In FY23, it had raised Rs 7,021 crore (around USD 850 million) at a pre-money valuation of USD 12 billion (about Rs 1 lakh crore) from investors. Tiger Global, TVS Capital Funds, Walmart, Ribbit Capital, and General Atlantic were the investors.
In the 2024-25 financial year, PhonePe was able to lower its consolidated losses from Rs 1,996.1 crore to Rs 1,727.4 crore in FY25. The firm’s revenue from operations surged 40.5 per cent to Rs 7,115 crore in FY25 as compared to Rs 5,064 crore in the previous financial year, data from Tofler mentioned.
PhonePe's IPO Strategy
Apart from providing digital payment solutions, PhonePe is also engaged in the business of providing services such as insurance, lending, and wealth management. It also launched new consumer tech businesses Pincode, Share.Market, and the Indus Appstore.
The confidential pre-filing route allows a company to withhold public disclosure of IPO details under the DRHP until later stages. Several companies are opting the confidential route so that they can aim for flexibility in their IPO plans.
Firms which filed IPO papers through confidential route
Tata Capital
Billionbrains Garage Ventures, the parent company of stock broking firm Groww
Edtech unicorn PhysicsWallah
Insurtech firm Turtlemint Fintech Solutions
Logistics service provider Shadowfax Technologies
Commerce enablement platform Shiprocket
Imagine Marketing, the parent company of wearables brand boAt
Last year, food delivery giant Swiggy and Vishal Mega Mart launched their IPOs following a confidential route.
Market experts are of the view that the firm chose the confidential pre-filing route as it allows them greater flexibility and reduces the pressure to go public quickly. As per the traditional route rules, the companies launching their IPOs are mandated to come up with their IPO within 12 months of receiving Sebi's approval, while the pre-filing route extends this window to 18 months from the receipt of final comments.
Also, firms are allowed to modify the primary issue size by up to 50 per cent until the updated DRHP stage.
Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, gold and crypto assets.