PhonePe has reported a stellar 40% year-on-year revenue growth, reaching ₹7,115 crore in FY25, driven significantly by its strategic diversification beyond payments into other financial services. Notably, the fintech giant has turned free cash flow positive, generating ₹1,202 crore from its operations during the fiscal year. Its adjusted EBITDA (excluding ESOP costs) more than doubled to ₹1,477 crore, while adjusted profit after tax surged 220% to ₹630 crore.
For the first time, PhonePe reported a positive Adjusted EBIT (excluding ESOP costs) of ₹117 crore, indicating operational strength and profitability.
This impressive financial performance reflects PhonePe’s focused expansion into loan distribution, stock broking, and merchant services, alongside its core payment business. These newer revenue verticals have begun contributing significantly to the company’s top line and bottom-line growth, positioning PhonePe as a diversified fintech leader in India’s rapidly evolving market.
PhonePe IPO Plans and Regulatory Milestones
PhonePe is advancing towards a long-awaited public listing, with plans to file its draft red herring prospectus (DRHP) confidentially with SEBI by the end of September 2025. The IPO, scheduled for early 2026, aims to raise $1.2 to $1.5 billion (approximately ₹10,000 to ₹13,000 crore) and values the company between $7 billion and $8 billion, with hopes to reach as high as $10 to $12 billion based on market conditions.
The IPO will feature a mix of fresh share issuance and an offer-for-sale from existing investors, such as Tiger Global and General Atlantic, while the majority owner Walmart is expected to retain most of its stake.
PhonePe’s financial turnaround has played a critical role in boosting investor and regulatory confidence. The company grew revenue 74% year-on-year to ₹5,064 crore in FY24, turning adjusted profits positive at ₹197 crore (excluding ESOP costs) after posting losses the previous year. The company’s core payments segment generated ₹710 crore in standalone adjusted profit in FY24, supported by its investments in lending, insurance, wealth technology, and ancillary digital products such as the Pincode marketplace and Indus AppStore.
Strategic Exits and Expansions
In line with regulatory priorities and strategic focus, PhonePe voluntarily surrendered its NBFC license in August 2025, transitioning away from direct lending towards partnerships and third-party integrations. It has secured vital approvals from RBI to operate prepaid instruments, run UPI transactions, and expand its offerings in insurance and wealth management. This regulatory progress primes PhonePe for broader business scaling and market penetration post-IPO.
Read this: Just Ahead of IPO, PhonePe Secures RBI’s Final Nod to Operate as Online Payment Aggregator
PhonePe’s FY25 financial gains, coupled with its expansive fintech ecosystem and imminent IPO, underscore its emergence as a dominant, diversified player in India’s fintech sector, poised to consolidate its market leadership and explore new growth horizons
