PhonePe Secures USD 600 Mn from General Atlantic Ahead of Planned 2026 Listing The new capital will largely be used to help employees exercise stock options and cover related tax liabilities, according to people familiar with the matter.
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Fintech firm PhonePe has raised USD 600 million in fresh funding from General Atlantic (GA) as it prepares for a domestic public listing early next year.
The latest round marks GA's largest single-company investment in India, surpassing its USD 870 million stake in Reliance Jio Platforms in 2020.
Since 2023, the US-based private equity firm has invested USD 550 million in PhonePe through multiple rounds. This new infusion, valuing the company at USD 14.5 billion, underscores GA's continued faith in the homegrown payments platform, even as PhonePe works to strengthen its revenue base amid intensifying competition in the fintech space.
The deal coincides with the company's confidential filing of its draft red herring prospectus (DRHP), marking a key step toward its planned listing.
PhonePe's valuation has risen sharply over the past five years. In May 2023, the company raised USD 850 million from a mix of investors including Walmart, Ribbit Capital, Tiger Global, and General Atlantic at a USD 12.5 billion post-money valuation.
With the latest round, PhonePe's total fundraising now stands at about USD 1.6 billion across four major rounds. The new capital will largely be used to help employees exercise stock options and cover related tax liabilities, according to people familiar with the matter.
PhonePe was acquired by Walmart as part of the deal with ecommerce major Flipkart. It was later separated into an independent entity in 2020 with a USD 5.5 billion valuation. Since then, Flipkart has launched its own fintech platform, Super.Money, which has emerged as one of the top five UPI players, competing with PhonePe across various payment and lending services.
Data from the National Payments Corporation of India shows that in September 2025, PhonePe processed 8.9 billion transactions, capturing over 45 percent of the total UPI market. The platform offers QR code-based payments, card swipes through point-of-sale terminals, and online transaction services.
As the company readies its listing, it continues to face regulatory uncertainty over the NPCI's proposed 30 percent cap on UPI market share per app, a rule whose implementation has been deferred until the end of 2026.
Beyond digital payments, PhonePe has invested around INR 800 crore in expanding its non-payment verticals, such as insurance, brokerage, and lending. These businesses have been structured as independent entities with dedicated leadership.
In FY25, the company reported revenue of INR 7,114.8 crore, a 40 percent jump from INR 5,064 crore the previous year. Its net loss narrowed to INR 1,727 crore, while adjusted EBITDA more than doubled to INR 1,477 crore. Adjusted for employee stock costs, the company turned profitable, ending the fiscal year with cash reserves of INR 6,000 crore.
With a market-leading position in UPI and a steadily improving financial profile, PhonePe's upcoming listing is set to be one of the most closely watched events in India's fintech landscape since Paytm's debut in 2021.
