Stake sale · Financial Services

PhonePe founders sell shares to General Atlantic before IPO

What they do

PhonePe is a major Indian digital payments and fintech app used by one in three Indians

Co-founders Sameer Nigam and Rahul Chari sold stakes worth ₹3,937.32 Cr to General Atlantic

The sale helps settle employee tax liabilities as the company prepares for its initial public offering

PhonePe co-founders Sameer Nigam and Rahul Chari sold a portion of their shareholding to private equity firm General Atlantic.
The transaction size was ₹3,937.32 Cr and occurred before the filing of the updated DRHP for an IPO.
The primary rationale for the sale was to settle withholding tax on employees' ESOP exercise.
This event coincides with deferred IPO plans citing market instability and recent leadership exits at subsidiaries.
Investors including Walmart, Tiger Global, and Microsoft plan to offload shares via Offer For Sale (OFS).
PhonePe filed an updated Draft Red Herring Prospectus (DRHP) with SEBI in January 2026.
The company reported a net loss of ₹1,444.4 Cr in H1 FY26 despite revenue growth.
Leadership changes include Vishal Gupta stepping down as CEO of PhonePe Insurance Broking Services.

The stake sale allows founders to meet tax obligations without diluting company equity through new funding.
Multiple investor exits via OFS signal profit-booking ahead of the public listing.
Deferred IPO plans reflect caution due to current market instability affecting valuation expectations.

PhonePe offers UPI payments, investments, insurance, recharges, DTH, lending, mutual funds, gold, and credit cards.
It operates international UPI services in Singapore, UAE, Nepal, Sri Lanka, Bhutan, and Mauritius.
One in three Indians uses the PhonePe app for daily transactions.
Operating revenue reached ₹3,918.5 Cr in H1 FY26, a 22.2% year-on-year jump.
Net loss widened to ₹1,444.4 Cr from ₹1,203.2 Cr in the previous year.
Margin contraction drove losses despite an exceptional gain of ₹434.5 Cr from divesting a 5% stake in MapmyIndia.
The company has expanded into insurance broking and financial services beyond basic payments.
It maintains a strong presence in the consumer internet and fintech sectors across India.

PhonePe awaits regulatory approval for its public float following the DRHP filing.
Investors are preparing to offload shares through Offer For Sale (OFS) mechanisms.
The company continues to expand its fintech offerings beyond core payment services.

General Atlantic (buyer) — Private equity firm buying founder stakes to settle tax liabilities.
Walmart (seller) — Plans to sell 4.59 Cr shares via OFS.
Tiger Global (seller) — Plans to sell 10.39 Lakh shares via OFS.
Microsoft (seller) — Plans to sell 36.78 Lakh shares via OFS.