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PhonePe pre-IPO reset: Rs 3,937 Cr founders’ secondary; Rs 1,500 Cr hit from credit card rent, RMG exits

EntrackrEntrackr · 10d ago
PhonePe pre-IPO reset: Rs 3,937 Cr founders’ secondary; Rs 1,500 Cr hit from credit card rent, RMG exits
Medial

PhonePe pre-IPO reset: Rs 3,937 Cr founders’ secondary; Rs 1,500 Cr hit from credit card rent, RMG exits As PhonePe moves closer to its public listing, its updated draft red herring prospectus (DRHP) highlights how regulatory developments and shareholder liquidity events have reshaped the company’s revenue mix over the past year. The filing shows that PhonePe has witnessed secondary share transactions worth Rs 5,771 crore since 2023. A significant portion of this came in September 2025, when co-founders Sameer Nigam and Rahul Chari undertook a secondary sale worth Rs 3,937 crore, with shares bought by General Atlantic. The transaction offered partial liquidity to the founders ahead of the IPO. Alongside these shareholder exits, PhonePe has also exited certain payment categories following regulatory intervention. According to the DRHP, the company discontinued credit card payment services for rent and related categories in September 2025 after receiving regulatory communication from the Reserve Bank of India (RBI) under the payment aggregator framework. The impact of this move is visible in the numbers. Revenue from rent and related categories stood at Rs 518 crore in the six months ended September 2025, while the segment contributed Rs 1,262 crore in FY25. During FY25, rent-related payments accounted for 8.92% of PhonePe’s total gross margins. PhonePe has also exited revenue streams linked to real money gaming (RMG) following legislative changes. As per DRHP, the company ceased generating revenue from advertising and payment gateway services associated with RMG after the enactment of the Promotion and Regulation of Online Gaming Act, 2025 on August 22, 2025. Consequently, PhonePe’s financials from October 2025 onwards exclude any contribution from the segment. RMG revenue stood at Rs 70 crore in H1 FY26, while the segment contributed Rs 245 crore in FY25. With both rent-related payments and RMG now excluded from its business, PhonePe has effectively shut down revenue streams that together contributed Rs 1,512 crore in FY25. The exit of these categories is expected to have a bearing on the company’s near-term financial performance, even as it sharpens its focus on core UPI payments and financial services in the run-up to its IPO.

Related News

CRED, PhonePe, Paytm stop rent payments via credit cards

EntrackrEntrackr · 4m ago
CRED, PhonePe, Paytm stop rent payments via credit cards
Medial

CRED, PhonePe, and Paytm have halted rent payments via credit cards on their platforms, according to three sources aware of the matter. The move follows the Reserve Bank of India’s (RBI) latest master directions on payment aggregator regulations. Entrackr tested rent payments by credit card on these apps and found the service temporarily unavailable. “CRED, PhonePe, and Paytm suspended the rent payment service just two days after the new guidelines were issued. While they technically have time until later this year to comply, the companies acted immediately under regulatory pressure,” said one of the sources, requesting anonymity. As per RBI’s directions on KYC and due diligence for payment aggregators (PA), a PA must ensure that a marketplace onboarded by it does not process payments for any seller outside the platform. In effect, this means apps like CRED, PhonePe, and Paytm would have to conduct KYC of landlords, a process that is costly and complex. Sources added that NoBroker and Housing are also expected to suspend rent payments via credit cards in the coming weeks. “CRED and PhonePe have been impacted the most, as they were the leading platforms facilitating rent payments through credit cards,” said the source quoted above. Queries sent to PhonePe, Paytm, and CRED did not elicit an immediate response. The story will be updated if and when they respond.

Exclusive: Dhan delivers 45X returns to Kunal Shah, PhonePe founders and other angels

EntrackrEntrackr · 1m ago
Exclusive: Dhan delivers 45X returns to Kunal Shah, PhonePe founders and other angels
Medial

Exclusive: Dhan delivers 45X returns to Kunal Shah, PhonePe founders and other angels Fintech investing platform Dhan has facilitated early-stage exits, with several angels and early investors securing hefty returns through a secondary transaction executed alongside its ongoing Series B round, according to sources aware of the matter. “Few angels who are building competing businesses, including Cred’s Kunal Shah, Miten Sampat, and members of the PhonePe founding network, have secured a full exit, generating nearly a 45X return in under four years,” said one of the sources, requesting anonymity. “This is one of the quickest and highest-multiple exits for angel investors in fintech in recent memory,” said the source cited above. According to the sources, early backers Mirae, Beenext, and 3one4 Capital have sold part of their holdings, earning 9–10X returns within three years. The secondary component was executed in parallel with Dhan’s $120 million Series B round, led by Hornbill Capital and featuring participation from MUFG Bank, Beenext, and a pool of public-market investors and family offices. Dhan currently has $160–180 million in cash on its balance sheet, and the primary money from the Series B will also be utilised for the acquisition of Statzy and some more potential startups, the sources added. Entrackr reached out to Dhan on Thursday for comments on the secondary transaction and will update the story if they respond. Kunal Shah and Miten Sampat declined to comment. PhonePe co-founders confirmed the exit but did not comment on returns earned. We have also reached out to Beenext, 3One4 Capital, and Mirae Asset. Founded in 2021 by Pravin Jadhav, Dhan operates as a stockbroking and investment platform aimed at active traders and Gen Z investors. It offers equity, ETF, and futures and options trading across NSE, BSE, and MCX, along with integrations for smallcase, TradingView, and MoneyControl to enhance user experience. Financially, Dhan has reportedly achieved strong performance, clocking around Rs 900 crore in revenue during FY25 against Rs 380 crore in FY24, while maintaining cash-flow positivity for multiple years. Dhan joins the growing list of profitable stockbroking unicorns in India, alongside Zerodha, Groww, and Angel One.

Zepto nears Rs 1,500 Cr structured debt deal ahead of IPO

EntrackrEntrackr · 9m ago
Zepto nears Rs 1,500 Cr structured debt deal ahead of IPO
Medial

Zepto nears Rs 1,500 Cr structured debt deal ahead of IPO: Report Quick commerce platform Zepto is reportedly finalising a Rs 1,500 crore ($175 million) structured debt deal with Edelweiss Alternative Asset and other investors. According to an ET report, the funds will be used to buy back shares from foreign investors, increasing Indian ownership ahead of Zepto’s planned IPO. Zepto is expected to file its IPO draft papers in mid-2025. The company has already secured approvals to shift its base from Singapore to India. Edelweiss is expected to underwrite about half of the loan, while other domestic family offices and credit funds are expected to contribute the remaining Rs 750 crore. The deal will value Zepto at around $5 billion, matching its last equity fundraising round when it raised $350 million, led by Motilal Oswal Private Wealth, in November last year. The report added that founders Aadit Palicha and Kaivalya Vohra’s stake will rise from 18% to around 20%, while overall domestic shareholding could exceed 30%, aligning with Indian foreign direct investment rules. Zepto is also close to completing a $250 million secondary share sale involving private equity firms like Motilal Oswal. In a recent development, Palicha disclosed that the Mumbai-based firm is also close to hitting an annualized Gross Order Value (GOV) of $4 billion.

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