Following the recent approval from the Securities and Exchange Board of India (SEBI), PhonePe has submitted its Updated Draft Red Herring Prospectus (UDRHP), moving closer to its much-anticipated public listing. The company, which first provided confidential IPO documents in September 2024, is now expected to enter the market soon.
As outlined in the UDRHP, the public offering will feature an offer for sale (up to 50,660,446 equity shares), led by the primary shareholder Walmart along with other prominent investors such as Tiger Global and Microsoft.
PhonePe asserts that it represents the achievement of India’s Digital Public Infrastructure (DPI) model, often referred to as the India Stack—an open digital framework aimed at providing secure and inclusive services at a population scale. This framework is supported by foundational systems like Aadhaar, Unified Payments Interface, Bharat Bill Payment System, e-RUPI, FASTag, and DigiLocker, which facilitate widespread digital adoption.
Let’s explore India’s DPI model and PhonePe’s success as the company discusses its path and accomplishments.
UPI at the core of PhonePe’s digital payments ecosystem
PhonePe’s main service is centered around UPI, which has revolutionized the payment system in India by facilitating immediate and seamless money transfers and merchant transactions nationwide. As one of the pioneering Third-Party Application Providers to leverage UPI on a large scale, PhonePe has also incorporated other Digital Public Infrastructure initiatives such as Bharat Connect, Aadhaar-enabled eKYC, DigiLocker, and the RuPay network.
Driving digital inclusion through DPI integrations
The company claims that these enhancements empower users to utilize services that range from peer-to-peer transfers and bill payments to KYC validation, merchant dealings, and online shopping—particularly bridging the gap for consumers in tier-2, tier-3, and rural areas as they enter the digital marketplace.
The platform provides a comprehensive range of UPI-based features, such as AutoPay for automatic transactions, Lite for small-value payments, and Circle for allowing others to make payments. PhonePe’s wallet is compatible with UPI, enabling payments at any merchant with a QR code.
Bharat Connect and Aadhaar eKYC deepen financial access
With Bharat Connect, the company claims that the users can handle mobile recharges, pay utility bills, cover taxes, settle education fees, and manage insurance premiums, among other tasks. The Aadhaar-enabled eKYC process streamlines the onboarding experience for financial services including lending, insurance, and brokerage.
RuPay Credit Card integration strengthens UPI ecosystem
Additionally, the company has launched RuPay credit card integration in collaboration with HDFC Bank and the State Bank of India, enhancing access to credit through UPI-linked payments.
Scale, user growth, and DPI-led expansion
PhonePe’s growth showcases the impact of innovation driven by Digital Public Infrastructure (DPI). According to its Draft Red Herring Prospectus (DRHP) from September 2025, the platform boasts over 657 million users and 47 million merchant accounts. In the fiscal year 2025, it handled more than 90 billion transactions from consumers and over 42 billion from merchants. Data from Sensor Tower reveals that PhonePe continues to be the most downloaded finance app on Android in India, with impressive daily engagement from active users in fiscal year 2026.
DPI-Driven Fintech expansion
The company claims that its swift expansion in payments, insurtech, and wealth management illustrates how private sector innovation built on public digital infrastructure can foster scalable and inclusive financial ecosystems. PhonePe’s growth trajectory underscores the overall effectiveness of India’s DPI model as a basis for fintech development and a framework for future digital economies.
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