PhonePe explained

PhonePe
Type:Digital payments & Financial services
Company Type:Private
Language:Multilingual (11)
Area Served:India
Industry:Fintech, Financial services, Payment gateway
Revenue: (2025)[1]
Parent:Walmart
Registration:Required
Commercial:Yes
Users:600 million[2]
Current Status:Active
Native Clients:Android
iOS
Location:Salarpuria Softzone, Bengaluru, Karnataka
Country:India[3]

PhonePe is an Indian digital payments and financial services company headquartered in Bengaluru, Karnataka, India.[4] [5] It was founded in December 2015,[6] by Sameer Nigam, Rahul Chari and Burzin Engineer.[7] The PhonePe app, based on the Unified Payments Interface, went live in August 2016.[8] [9]

The PhonePe app is accessible in 11 Indian languages.[10] It enables users to perform various financial transactions such as sending and receiving money, recharging mobile and DTH, making utility payments, conducting in-store payments.[11] [12]

History

PhonePe was incorporated in December 2015.[13] In April 2016, the company was acquired by Flipkart[14] [15] and as part of the acquisition, the FxMart license was transferred to PhonePe and rebranded as the PhonePe wallet. PhonePe's co-founder Sameer Nigam was appointed as the CEO of the company.[16]

In August 2016, the company partnered with Yes Bank to launch a UPI-based mobile payment app, based on the government-backed UPI platform.[17]

In 2022, they were launching international UPI payments, allowing Indian users traveling abroad to pay foreign merchants with Unified Payments Interface (UPI).[18] [19]

In 2022, PhonePe obtained licensing from the Reserve Bank of India for operating a Semi-Closed Prepaid Payment system.[20]

In April 2023, PhonePe launched a new shopping app called 'Pincode', focused on hyperlocal e-commerce and built on top of the ONDC platform.[21] [22]

In August 2023, PhonePe launched Share.Market, foraying into stock broking and mutual fund investment via its subsidiary PhonePe Wealth Broking.[23] [24] The platform allows users to trade in stocks and mutual funds, including intraday trading and pre-curated investment baskets.[25]

In February 2024, PhonePe introduced Indus Appstore, a mobile app store.[26] [27] The app store offers over 2 lakh apps and games across 45 categories.[28]

In April 2025, PhonePe converted into a public company and changed its name from PhonePe Private Limited to PhonePe Limited as part of its preparations for an initial public offering.[29] [30] According to media reports, in September 2025, PhonePe filed draft papers with SEBI for IPO via the confidential pre filing route.[31]

Ownership and funding

In December 2020, Flipkart and PhonePe declared a partial split, with Walmart maintaining its majority ownership in PhonePe and the two entities now functioning independently.[32]

In 2022, PhonePe shifted its domicile to India from Singapore and completed separation from Flipkart.[33]

PhonePe announced the acquisition of $350 million from General Atlantic, a US growth equity firm, at a pre-money valuation of $12 billion.[34] Subsequently, another $100 million was attained in primary capital in February 2023 from Ribbit Capital, Tiger Global, and TVS Capital Funds, followed by $200 million in primary capital from Walmart, and another $100 million from General Atlantic at the same valuation. This brings the total amount of funding raised by PhonePe to $850 million.[35] [36]

Awards and recognition

Legal challenges

On 14 January 2017, ICICI bank blocked PhonePe transactions, citing the reasons that it did not meet the NPCI guidelines.[39] [40] Initially, on 19 January 2017, NPCI instructed ICICI to allow UPI transactions via PhonePe.[41] During this period, Airtel too blocked PhonePe transactions on its platforms.[42] A day later, on 20 January 2017, NPCI renounced the previous instructions citing the reason that PhonePe indeed violated the UPI norms.[43] [44] [45]

After this, PhonePe closed its operations on Flipkart's website,[46] to align itself with the terms stated in the updated verdict from NPCI. By February 2017, PhonePe resolved the issues with ICICI and Airtel.[47]

ESOP

PhonePe allots employee stock options (ESOPs) to its full-time employees.[48] In November 2021, PhonePe was reported to have conducted a buyback of ESOPs worth, covering 75% of its current workforce who have completed at least a year of service.[49]

See also

Notes and References

  1. Web site: PhonePe cuts losses to ₹1,727.4 crore as revenue climbs 40% . The Hindu . 2025-09-22 . 2025-11-03.
  2. Web site: TNIE online desk . PhonePe files draft papers for $1.5 billion IPO . The New Indian Express . 2025-09-24 . 2025-11-03.
  3. Web site: Contact Us . PhonePe, Pvt Ltd . 2015-03-15 . 2019-09-29 . 3 May 2020 . https://web.archive.org/web/20200503194806/https://www.phonepe.com/en/contact_us.html . live .
  4. News: Singh. Abhinav. 10 March 2020. Why digital payment firms should not rely on single bank. en. The Week. 11 March 2023. 29 November 2022. https://web.archive.org/web/20221129042605/https://www.theweek.in/news/biz-tech/2020/03/10/why-digital-payment-firms-should-not-rely-on-single-bank.html. live.
  5. Web site: Top ten Indian Fintech unicorns - ET BFSI . 2023-03-29 . ETBFSI.com . en . 31 March 2023 . https://web.archive.org/web/20230331113105/https://bfsi.economictimes.indiatimes.com/news/fintech/top-ten-indian-fintech-unicorns/83838113 . live .
  6. Web site: 2023-12-02 . IBLA 2023: Walmart-backed PhonePe is this edition's 'Young Turk of The Year' - CNBC TV18 . 2024-11-07 . CNBCTV18 . en.
  7. News: Chanchani. Madhav. 4 April 2016. Flipkart acquires former executive's startup PhonePe for payments push. The Economic Times. 11 March 2023. 2 February 2023. https://web.archive.org/web/20230202082501/https://economictimes.indiatimes.com/small-biz/startups/flipkart-acquires-former-executives-startup-phonepe-for-payments-push/articleshow/51643300.cms. live.
  8. News: Sen. Anirban. 10 January 2017. Flipkart's PhonePe crosses 10 million downloads on Google Play Store. Mint. 11 March 2023. 27 November 2022. https://web.archive.org/web/20221127042832/https://www.livemint.com/Companies/UYnMwPyHD8KKZZUJpb7uMP/Flipkarts-PhonePe-crosses-10-million-downloads-on-Google-Pl.html. live.
  9. News: 2021-10-29 . PhonePe offers guaranteed cashback on gold, silver: Here are details . 2024-11-07 . The Times of India . 0971-8257.
  10. Web site: 20 April 2020. 5 digital payment platforms you can use during Coronavirus Lockdown. 2020-07-19. India Today. en. 18 September 2020. https://web.archive.org/web/20200918205425/https://www.indiatoday.in/information/story/5-digital-payment-platforms-you-can-use-to-make-payment-during-coronavirus-lockdown-1668921-2020-04-20. live.
  11. Web site: 2021-09-30. PhonePe launches silver investments; allows users to buy silver coins and bars. 2022-01-29. cnbctv18.com. en. 6 February 2023. https://web.archive.org/web/20230206052049/https://www.cnbctv18.com/videos/market/commodities/phonepe-launches-silver-investments-allows-users-to-buy-silver-coins-and-bars-10939762.htm. live.
  12. News: Dasgupta. Brinda. 23 March 2018. Payments platform PhonePe looks to double its team. The Times Of India. 11 March 2023. 30 November 2022. https://web.archive.org/web/20221130115250/https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/payments-platform-phonepe-looks-to-double-its-team/articleshow/63425639.cms?from=mdr. live.
  13. Web site: Flipkart : India's most preferred online shopping store. 14 February 2020. The Indian Wire. 3 July 2018 . 6 August 2020. https://web.archive.org/web/20200806075740/https://www.theindianwire.com/startups/flipkart-62283/. live.
  14. Web site: 2016-04-01 . Flipkart acquires mobile payments firm PhonePe . 2024-11-07 . BusinessLine . en.
  15. News: Flipkart acquires former executive's startup PhonePe for payments push. The Economic Times. 2017-02-20. 25 December 2018. https://web.archive.org/web/20181225235450/https://economictimes.indiatimes.com/small-biz/startups/flipkart-acquires-former-executives-startup-phonepe-for-payments-push/articleshow/51643300.cms. live.
  16. Web site: Raj . Ritik . Meet man who once worked at Flipkart, now runs Rs 99400 crore company, he is… . 2024-11-07 . DNA India . en.
  17. Web site: Sahay . Priyanka . Flipkart's PhonePe ties up with Yes Bank to launch UPI-based app . Live Mint. 29 August 2016 .
  18. Web site: 2022-11-09 . Walmart-owned PhonePe to enable UPI activation on Aadhaar-based OTP . 2023-03-29 . Business Standard . en-US . 31 March 2023 . https://web.archive.org/web/20230331114015/https://www.business-standard.com/article/companies/walmart-owned-phonepe-to-enable-upi-activation-on-aadhaa-based-otp-122110901215_1.html . live .
  19. News: 2023-02-07 . PhonePe allows cross-border UPI payments in UAE, Singapore . 2024-11-07 . The Hindu . en-IN . 0971-751X.
  20. Web site: Reserve Bank of India - Publications. 2017-02-20. rbi.org.in. 25 December 2018. https://web.archive.org/web/20181225235441/https://rbi.org.in/scripts/publicationsview.aspx?id=12043. live.
  21. Web site: 2024-11-27 . PhonePe's Pincode Takes on Blinkit, Instamart Across Metros in Quick Commerce Game . 2025-03-06 . Outlook Business . en.
  22. Web site: BOWebEditor . 2025-01-14 . New Pincode App from PhonePe Seeks Role in Quick Commerce Market . 2025-03-06 . Business Outreach.
  23. Web site: PhonePe continues to earn nearly entire revenue from payments business . 2025-03-06 . VCCircle . en-US.
  24. News: PhonePe launches Share.Market app, enters stock broking business . Livemint.
  25. News: 2023-08-30 . PhonePe enters online stock broking with a new app . 2025-03-06 . The Hindu . en-IN . 0971-751X.
  26. Web site: 2024-03-05 . PhonePe's Indus Appstore surpasses 1 mn installations in 1 month . 2025-03-06 . www.fortuneindia.com . en.
  27. Web site: 2024-03-18 . PhonePe's Indus Appstore Crosses 1 Million Installations Within A Month . 2025-03-06 . Outlook Business . en.
  28. Web site: PhonePe diversification strategy pays off, high revenue growth likely to sustain . https://web.archive.org/web/20240903170142/https://www.moneycontrol.com/technology/phonepe-diversification-strategy-pays-off-high-revenue-growth-likely-to-sustain-article-12808510.html . 3 September 2024 . 2025-03-06 . Moneycontrol . en-US . live .
  29. Web site: UPI market leader PhonePe becomes a public company ahead of IPO . Moneycontrol . 2025-04-18 . 2025-11-03.
  30. Web site: PhonePe becomes public company amid mega IPO preparations . mint . 2025-04-18 . 2025-11-03.
  31. Web site: PhonePe files draft prospectus for $1.5 billion IPO with Sebi through confidential route . The Economic Times . 2025-09-24 . 2025-11-03.
  32. Web site: Singh . Manish . 2022-12-23 . Flipkart and PhonePe complete separation . live . https://web.archive.org/web/20230607194232/https://techcrunch.com/2022/12/22/flipkart-and-phonepe-complete-separation/ . 7 June 2023 . 2023-03-29 . TechCrunch . en-US.
  33. Web site: PhonePe turns profitable excluding Esop costs in FY24 . The Times of India . 2024-08-26 . 2026-01-27.
  34. Web site: Rawat . Aman . 2023-01-19 . PhonePe raises $350 mn from General Atlantic at $12 bn valuation . 2023-03-29 . mint . en . 19 April 2023 . https://web.archive.org/web/20230419102302/https://www.livemint.com/companies/start-ups/phonepe-raises-350-mn-from-general-atlantic-at-12-bn-valuation-11674108233101.html . live .
  35. Web site: PhonePe raises $100 million in additional funding . 2023-03-29 . Financialexpress . 15 February 2023 . en . 4 April 2023 . https://web.archive.org/web/20230404105443/https://www.financialexpress.com/industry/phonepe-raises-100-million-in-additional-funding/2981617/ . live .
  36. News: 2023-05-23 . PhonePe gets another $100 million from General Atlantic; total funding rises to $850 million . The Economic Times . 2023-07-26 . 0013-0389.
  37. News: Kannan. Uma. 6 August 2018. PhonePe eyes top slot in digital payments. Deccan Herald. 11 March 2023. 27 November 2021. https://web.archive.org/web/20211127121826/https://www.deccanherald.com/business/economy-business/phonepe-eyes-top-slot-digital-685738.html. live.
  38. Web site: MullenLowe Lintas Group and Ogilvy dominate the IndIAA Awards . Campaign India . 2018-08-31 . 2024-04-19.
  39. News: Sen. Anirban. 2017-01-14. ICICI blocks PhonePe transactions in sign of banks moving to protect payments turf. Mint. 2017-02-20. 25 December 2018. https://web.archive.org/web/20181225235422/https://www.livemint.com/Industry/V34XcBBjpRUgPyrWPX9qzN/ICICI-blocks-PhonePe-transactions-in-sign-of-banks-moving-to.html. live.
  40. News: Peermohamed. Alnoor. 2017-01-16. ICICI Bank blocks transactions through Flipkart wallet PhonePe. Business Standard. 2017-02-20. 25 December 2018. https://web.archive.org/web/20181225235424/https://www.business-standard.com/article/companies/icici-bank-blocks-transactions-through-flipkart-wallet-phonepe-117011500600_1.html. live.
  41. News: NPCI instructs ICICI to allow UPI transactions on PhonePe immediately. The Economic Times. 2017-02-20. 25 December 2018. https://web.archive.org/web/20181225235444/https://economictimes.indiatimes.com/small-biz/money/npci-instructs-icici-to-allow-upi-transactions-on-phonepe-immediately/articleshow/56669210.cms. live.
  42. News: After ICICI Bank, Airtel also blocks PhonePe - The Economic Times. The Economic Times. 2017-02-20. 25 December 2018. https://web.archive.org/web/20181225235446/https://economictimes.indiatimes.com/small-biz/money/after-icici-bank-airtel-also-blocks-phonepe/articleshow/56671243.cms. live.
  43. News: NPCI says Flipkart's PhonePe does not follow UPI rules - The Economic Times. The Economic Times. 2017-02-20. 25 December 2018. https://web.archive.org/web/20181225235421/https://economictimes.indiatimes.com/small-biz/money/npci-says-flipkarts-phonepe-does-not-follow-upi-rules/articleshow/56692212.cms. live.
  44. News: IANS. 2017-01-21. PhonePe app in breach of UPI guidelines: NPCI. Business Standard. 2017-02-20. 25 December 2018. https://web.archive.org/web/20181225235408/https://www.business-standard.com/article/companies/phonepe-app-in-breach-of-upi-guidelines-npci-117012001547_1.html. live.
  45. News: PTI. 2017-01-20. PhonePe in violation of UPI norms, says NPCI in U-turn. Mint. 2017-02-20. 25 December 2018. https://web.archive.org/web/20181225235407/https://www.livemint.com/Companies/qkc3xTGBRnH0W3Xf80znLJ/Flipkarts-PhonePe-app-in-violation-of-UPI-norms-says-NPCI.html. live.
  46. News: Nair. Vishwanath. 2017-01-21. PhonePe stops all UPI-based payments on Flipkart website. Mint. 2017-02-20. 25 December 2018. https://web.archive.org/web/20181225235431/https://www.livemint.com/Industry/GQBybiQPaPwL5yI65NqVtI/PhonePe-stops-all-UPIbased-payments-on-Flipkart-website.html. live.
  47. News: ICICI Bank resumes UPI transactions on PhonePe - The Economic Times. The Economic Times. 2017-02-20. 25 December 2018. https://web.archive.org/web/20181225235438/https://economictimes.indiatimes.com/small-biz/startups/icici-bank-resumes-upi-transactions-on-phonepe/articleshow/56923051.cms. live.
  48. News: Abrar. Peerzada. 2021-02-04. PhonePe distributes ESOPs worth Rs 1,500 crore among all employees. Business Standard India. 2021-03-29. 6 February 2023. https://web.archive.org/web/20230206053550/https://www.business-standard.com/article/companies/phonepe-distributes-esops-worth-rs-1-500-crore-among-all-employees-121020401698_1.html. live.
  49. Web site: PhonePe announces ₹135 cr ESOPs buyback programme from employees this year . Live Mint.

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