PhonePe's RMG Revenue Halves in H1 FY26 After Regulatory Ban

• PhonePe's real money gaming (RMG) revenue dropped to Rs 71 crore in H1 FY26, a significant decrease from Rs 147 crore in H1 FY25.
• The decline is attributed to the government's ban on real money gaming, effective August 22, 2025, under the Promotion and Regulation of Online Gaming Act, 2025.
• Despite the RMG revenue drop, PhonePe's overall operational revenue increased by 22% to Rs 3,918 crore in H1 FY26.
• The company's losses widened in H1 FY26 to Rs 1,444 crore, compared to Rs 1,203 crore in H1 FY25, despite narrowing losses on a full-year basis in previous fiscal years.
• PhonePe's upcoming IPO will be an Offer For Sale (OFS) of 5.06 crore equity shares, with WM Digital Commerce Holdings (Walmart-owned) selling a major portion.

Why It Matters: PhonePe's RMG revenue significantly declined due to a regulatory ban, but overall revenue grew, though losses widened in H1 FY26.