In its concept documents, the company states that digital payments will remain the key driver of growth, supported by investments to expand its user base, addressable market and platform scale.
India’s total addressable market for digital consumer payments stood at ₹301 lakh crore in FY 2025 and is expected to grow to ₹602-681 lakh crore in FY 2030, the company said, citing industry estimates.
According to sources, PhonePe is aiming to launch its IPO in April.
The proposed offer will be entirely an offer for sale of 5.06 crore equity shares by Walmart, Microsoft and Tiger Global, with no fresh issue component.
In January, the company received SEBI approval to go ahead with its initial public offering, following its confidential filing in September.
To expand its consumer base, PhonePe plans to deepen the penetration of smartphones and feature phones.
India had an estimated 69-70 crore smartphone users in FY 2025, which is expected to rise to 96-108 crore in FY 2030, while the number of feature phone users is estimated at 20-30 crore, according to the DRHP.
In June 2025, PhonePe acquired Gupshup’s GSPay technology stack for conversational platform to enable UPI-based payments on feature phones. The company said it is also exploring future consumer use cases such as credit on UPI, transit payments between transport modes and payments through smart and connected devices.
“We are also focused on future consumer-facing opportunities such as enabling all forms of credit on UPI, building transit solutions for all modes of transportation and expanding consumer touchpoints through smart and connected devices in homes and vehicles,” the company said.
As of March 31, 2025, PhonePe had over 29 crore active customers, representing around 41-42 percent of smartphone users in India, indicating significant room for growth.
On the merchant side, PhonePe plans to expand digital payments adoption in a market where penetration remains well below that of global competitors. According to a report by RedSeer, India’s digital payment transaction penetration was around 45 percent in fiscal 2025, compared to China’s 93 percent.
Merchant digital payment volumes in India reached ₹112 lakh crore in FY25 and are expected to grow at a compound annual rate of 20-22 percent in FY30, supported by government initiatives such as the Payments Infrastructure Development Fund (PIDF).
India has an estimated 5.6 to 5.8 crore small and micro traders, 30,000 to 40,000 medium businesses and over 20,000 large enterprises.
However, only about 1.11 crore merchants transact on PhonePe monthly, while about 67.5 lakh engage daily, highlighting further opportunities for penetration, the company said.
PhonePe is also expanding its financial services distribution business, including loans and insurance. In addition to its core businesses, the company plans to invest in new platforms to diversify revenue streams, including Share.Market, its digital investment and wealth management platform and an indigenous mobile app store, Indus Appstore.
The company’s financial performance improved in FY25, with revenue rising 40 percent year-on-year to ₹7,115 crore, while adjusted profit after tax more than tripled to ₹630 crore.
Published on February 8, 2026
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