General Atlantic has invested $600 million in PhonePe, doubling its stake in the Walmart-owned fintech giant from 4.4% to 9%, according to people familiar with the matter.
The latest funding round — primarily secondary in nature — is aimed at helping PhonePe employees meet tax obligations arising from the exercise of their Employee Stock Options (ESOPs), ahead of the company’s much-anticipated initial public offering (IPO).
Sources confirmed that none of the founders or existing investors sold shares as part of this transaction.
With this latest infusion, General Atlantic’s total investment in PhonePe now stands at $1.15 billion since 2023, underscoring its continued confidence in the company’s growth prospects.
PhonePe declined to comment on the development. The Economic Times first reported the story.
The investment comes as PhonePe prepares for its public listing, with the company expected to file its Draft Red Herring Prospectus (DRHP) later this year. The fintech has already confidentially submitted papers to SEBI, targeting a ₹12,000 crore ($1.35 billion) IPO through an offer for sale (OFS). Major shareholders, including Walmart, Tiger Global, and Microsoft, are expected to participate, leading to an estimated 10% equity dilution.
Financially, PhonePe has shown strong performance ahead of its IPO. The company’s revenue grew 40% year-on-year to ₹7,115 crore in FY25, driven by its expansion into financial services beyond payments. It also achieved a key milestone by turning free cash flow positive, generating ₹1,202 crore from operations during the fiscal year.
