IPO-Bound PhonePe Focuses on Payments Growth and Platform Expansion

As IPO Nears, PhonePe Builds for Long-Term Growth Across Payments, Merchants, and Consumer Platforms

With a public listing on the horizon, PhonePe is sharpening its focus on what it believes will drive sustained growth. The company plans to strengthen its leadership in digital payments while steadily expanding into financial services and new consumer-facing platforms.

Backed by Walmart, PhonePe is targeting an IPO as early as April, according to people familiar with the matter. Its draft filings make one thing clear. Payments will remain the foundation of the business, supported by continued investment in users, merchants, and platform scale.

The opportunity remains large. India’s digital consumer payments market was valued at Rs 301 trillion in FY25 and is expected to more than double by FY30, reaching between Rs 602 trillion and Rs 681 trillion, based on industry estimates cited by the company.

The proposed IPO will be structured entirely as an offer for sale. Existing shareholders including Walmart, Microsoft, and Tiger Global plan to sell a combined 5.06 crore shares. There is no fresh capital raise planned. PhonePe received approval from the Securities and Exchange Board of India in January, following its confidential filing last year.

Expanding access remains a central theme. While smartphone adoption continues to grow, PhonePe is also targeting India’s large feature phone user base. India had close to 70 crore smartphone users in FY25, a figure expected to cross 100 crore by FY30. Feature phone users still account for an estimated 20 to 30 crore people.

To reach this segment, PhonePe acquired Gupshup’s GSPay technology in June 2025, enabling UPI payments on feature phones. The company is also exploring additional everyday use cases, including credit offerings through UPI, integrated transit payments, and payment experiences through connected devices in homes and vehicles.

As of March 31, 2025, PhonePe reported more than 29 crore active users. That represents roughly 42 percent of India’s smartphone population, suggesting meaningful room for further adoption.

On the business side, the gap is even wider. Digital payments penetration among Indian merchants stood at about 45 percent in FY25, compared with more mature markets such as China, where adoption exceeds 90 percent. Merchant transaction volumes in India reached Rs 112 lakh crore in FY25 and are expected to grow at over 20 percent annually through FY30, supported by policy initiatives like the Payments Infrastructure Development Fund.

India has more than five crore small and micro merchants, alongside tens of thousands of mid-sized and large enterprises. Yet only about 1.11 crore merchants transact on PhonePe each month, with fewer than seven million using the platform daily.

Beyond payments, PhonePe continues to scale its distribution of lending and insurance products. It is also investing in new growth areas, including Share.Market, its digital investing platform, and Indus Appstore, a homegrown alternative app marketplace.

Financially, the company delivered a strong FY25. Revenue increased 40 percent year on year to Rs 7,115 crore, while adjusted profit after tax rose to Rs 630 crore, more than three times the previous year.

As PhonePe prepares to enter public markets, its strategy reflects a clear priority. Build depth in payments, widen merchant and consumer reach, and create additional platforms that extend its relevance beyond transactions.