PhonePe Files IPO Papers with SEBI; Microsoft, Tiger Global to Pare Stake

• Walmart-backed PhonePe has filed its Updated Draft Red Herring Prospectus (UDRHP) with SEBI for an IPO.
• The IPO will be an entirely Offer For Sale (OFS) of 5.07 crore shares, with no fresh issue component.
• Walmart, Tiger Global, and Microsoft are expected to collectively offload about a 10% stake through the OFS.
• PhonePe reported strong financial performance in FY25, with operating revenue up 40.4% to ₹7,114.8 crore and net loss narrowed by 13.4%.
• The company turned free cash flow positive, generating ₹1,202 crore from operations, and achieved positive Adjusted EBIT for the first time.

Why It Matters: PhonePe is moving towards a public listing in India, with existing investors paring stakes and strong financials.