General Atlantic has invested USD 600 million into PhonePe, increasing its stake from 4.4% to 9%, as detailed in the press release.

The investment aims to assist PhonePe employees with their tax obligations arising from exercising Employee Stock Options (ESOPs) prior to the company’s Initial Public Offering (IPO). No founders or existing investors have sold their shares as part of this initiative.

Funding and IPO Preparation

Since 2023, General Atlantic has invested a total of USD 1.15 billion in PhonePe, underscoring its support for the company’s growth trajectory.

As PhonePe prepares for its IPO, the digital payments and financial services firm is expected to file its Draft Red Herring Prospectus (DRHP) by the end of 2025. According to Moneycontrol, PhonePe has filed papers with Sebi confidentially, aiming for a USD 1.35 billion IPO via an offer for sale.

Key shareholders, including Walmart, Tiger Global, and Microsoft, are likely to sell portions of their holdings in the offering, potentially leading to a 10% dilution.

IPO Plans and Financial Performance

Back in June, discussions about PhonePe’s IPO plans began, with the company seeking to raise USD 1.5 billion for an estimated valuation around USD 15 billion. Following a funding round in 2023, secured from investors such as Ribbit Capital, Tiger Global Management, and TVS Capital Funds, PhonePe’s valuation stood at approximately USD 12 billion.

The company’s financial performance has shown a significant improvement, with revenue increasing by 40% year-on-year (YoY) in fiscal year 2025. This growth is attributed to PhonePe’s expansion beyond its core payments business. The investment from General Atlantic further demonstrates the firm’s trust in PhonePe’s local consumer internet market potential.