General Atlantic pumps $600 mn into PhonePe ahead of IPO

phonepe

General Atlantic has infused $600 million into PhonePe, doubling its stake in the Walmart-owned fintech major from 4.4 percent to 9 percent, according to people familiar with the matter.

The funding, largely secondary in nature, is intended to help PhonePe employees fulfil their tax obligations arising from exercising their Employee Stock Options (ESOPs) ahead of the company’s much-anticipated initial public offering (IPO).

None of the founders or existing investors have offloaded their shares as part of this transaction, sources said.

With this latest infusion, the US-based private equity firm has now invested a total of $1.15 billion in PhonePe since 2023, underscoring its confidence in the company’s growth trajectory.

PhonePe declined to comment on the development. Economic Times reported the developments first.

The deal comes as PhonePe readies itself for a public debut, with the company expected to file its draft red herring prospectus (DRHP) later this year.

As Moneycontrol earlier reported, the fintech has confidentially filed papers with market regulator Sebi, targeting a Rs 12,000 crore ($1.35 billion) IPO through an offer for sale (OFS). Walmart, Tiger Global, and Microsoft are among the shareholders likely to sell part of their holdings in the offering, which could result in a 10 percent dilution.

PhonePe’s financial performance has also strengthened ahead of the listing. The company posted a 40 percent year-on-year jump in revenue to Rs 7,115 crore in FY25, driven by its diversification beyond payments into financial services. It also turned free cash flow positive, generating Rs 1,202 crore from operations during the year.