Phonepe claims continued market share leadership from December 2020 to September 2025 in terms of number of transactions and total payment value for customer-initiated UPI transactions.
Phonepe’s new investments in new platforms aim to diversify business and revenue streams, with the aim of unlocking major new market opportunities.
UPI transactions accounted for 87 percent of consumer payments value in FY25 and total consumer payments stood at ₹301 lakh crore.
Payments to merchants are also increasing, supported by innovations such as QR codes and payment devices. Increasing financial inclusion is a key growth driver, with total digital consumer payments expected to grow at a CAGR of 15-18 percent in FY 2030.
Product innovations and increasing digital penetration, especially in smaller cities, are driving further expansion of the payments sector.
“Each of these is a major TAM (Total Addressable Market) opportunity that we intend to leverage, leveraging our internal technology stack and the distribution and scale of the PhonePe Platform, enabled by strong grassroots leadership and governance,” Phonepe said in its Updated DRHP1.
Majority shareholder Walmart wants to divest about 9 percent of its stake, but this sale is mainly driven by regulatory requirements. Two other shareholders Tiger Global (0.2 percent) and Microsoft (0.7 percent) participate in the sale.
General Atlantic’s 2025 transaction increased its stake to 8.9 percent through a $600 million investment. Interestingly, as part of this transaction, the founders and employees exercised their vested stock options and converted them into shares.
They sold only 39 percent of their shares to General Atlantic to cover related tax liabilities. This was a tax planning exercise, not a liquidity event. No founder or employee received personal liquidity from this transaction, an analyst said.
Published on January 24, 2026
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