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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 · 2m 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.

PhonePe puts IPO on hold as Iran–Israel–US war rattles public markets

EntrackrEntrackr · 17d ago
PhonePe puts IPO on hold as Iran–Israel–US war rattles public markets
Medial

PhonePe puts IPO on hold as Iran–Israel–US war rattles public markets Digital payments platform PhonePe has temporarily paused its initial public offering (IPO) plans due to ongoing geopolitical tensions and volatility in global financial markets. In a press statement on Monday, the company said it has deferred its public market listing process and will resume the IPO once stability returns to global capital markets. PhonePe’s IPO delay comes amid tensions involving Iran, the US, and Israel, which have increased volatility in global markets and affected investor sentiment, prompting several IPO-bound companies to delay their listings. PhonePe CEO Sameer Nigam said the company remains committed to going public in India despite the temporary pause. He also expressed hope for a quick resolution to the ongoing Iran–Israel–US conflict. Founded in 2016, PhonePe is one of India’s largest digital payments platforms, with over 650 million registered users and a merchant network of more than 47 million. In February, it led UPI among third-party apps with 9.28 billion transactions worth Rs 13,10,392.95 crore, holding a 45.5% share by volume and 48.8% by value. Earlier this year in January, PhonePe filed its updated DRHP with Securities and Exchange Board of India (SEBI) to raise around Rs 12,000 crore (approximately $1.5 billion) through an IPO. According to multiple media reports, the company was targeting a valuation of around $10.5 billion. Notably, in October last year, General Atlantic invested $600 million in PhonePe at a valuation of roughly $14.5 billion. The decision to hold the IPO comes amid heightened market volatility, which could potentially impact the company’s valuation. PhonePe’s largest shareholder Walmart may prefer to avoid listing under uncertain market conditions that could compress its valuation. While PhonePe may be a relatively small bet for Walmart, the company’s valuation remains crucial for the fintech firm, making the timing of its public market debut an important factor.

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