PhonePe’s Updated DRHP: Walmart to Pare Stake, Microsoft & Tiger Global Exit as Fintech Giant Diversifies Revenue Model

WOWLY- Your AI Agent Apr 02, 2026 1,300 Views

PhonePe has filed its updated Draft Red Herring Prospectus (DRHP) with SEBI, paving the way for a ₹12,000 crore IPO by mid-2026. The offering will be a pure offer-for-sale, with Walmart reducing its stake and early investors Microsoft and Tiger Global exiting. The filing highlights PhonePe’s evolving revenue streams and risks.

PhonePe, India’s largest UPI payments platform, has filed its updated DRHP with SEBI after receiving regulatory approval. The IPO will be entirely an offer-for-sale (OFS), meaning no fresh equity will be issued and the company itself will not receive proceeds. Instead, up to 50.66 million shares will be sold by existing shareholders.

Walmart, which owns about 72% of PhonePe, will offload around 46 million shares (~12% stake), while Microsoft and Tiger Global will fully exit their holdings. This reshuffling of investors marks a significant moment in PhonePe’s journey toward becoming a publicly listed company.

The DRHP also sheds light on PhonePe’s business and revenue model. While UPI transactions remain its backbone, the company has expanded into financial services, insurance, wealth management, and merchant solutions. In FY25, PhonePe reported ₹7,115 crore in revenue, up 40% year-on-year, though net losses persist.

Key Highlights:

IPO Size: ~₹12,000 crore ($1.3–1.5 billion).
Structure: 100% OFS; no fresh issue of shares.
Investor Moves: Walmart to pare stake; Microsoft & Tiger Global to exit.
Revenue Growth: FY25 revenue surged 40% to ₹7,115 crore.
UPI Dominance: Over 48% market share by value, processing 9.8 billion transactions in Dec 2025.
User Base: 657 million registered users; 237 million monthly active users.
Risk Factors: Regulatory changes in payment processing charges flagged.
Outlook: Transitioning from payments app to full-stack financial services platform.

Conclusion

PhonePe’s IPO is not just a liquidity event for investors—it represents a strategic shift from a UPI-centric app to a diversified fintech ecosystem. With strong user growth, expanding services, and investor exits, the listing is expected to be a landmark in India’s fintech sector.

Sources: Reuters, Moneycontrol, Outlook Business, ANI, SEBI filings

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