The Fintech Disruptor — Built in India, for India
Founded in December 2015 by Sameer Nigam, Rahul Chari, and Burzin Engineer, PhonePe launched its Unified Payments Interface (UPI) app in August 2016, riding the surge of India’s digital payments revolution.
- Sameer Nigam (CEO) brought product and tech leadership.
- Rahul Chari (CTO) led engineering and payments innovation.
- Burzin Engineer (CPO) oversaw app design and monetization.
Their goal: create a low-cost, high-reach UPI-led platform that could easily rival wallet-centric players. Partnering with Yes Bank and Flipkart gave them quick scale and consumer trust .
From UPI App to Fintech Platform
By FY24, PhonePe had become a $12 billion+ valuation unicorn, processing over 310 million transactions daily from 590 million registered users and 40 million merchants .
Gaining independence in 2022 and shifting headquarters from Singapore to India, PhonePe began preparing for its long-anticipated IPO—aiming for a $15 billion valuation.
Expanding Beyond Payments
PhonePe rapidly diversified into multiple financial services and commerce:
- Quick commerce (Pincode app): 15-minute delivery across 6 cities, combining its own fleet with Kirana partnerships.
- UPI on feature phones: Acquired Gupshup’s GSPay to reach non-smartphone users—an inclusion-first strategy.
- Deep investments in fintech: Launched lending, insurance, wealth (Share.Market), an app store, and paused the account aggregator unit to focus on core offerings.
- Own infrastructure: Invested ₹2,800 crore in India-based servers and data centers for security and regulatory compliance.
FY24 Financials: Turning a Profit
- Revenue: ₹5,064 crore (up 73% YoY)
- PAT: ₹197 crore (first-ever profit, reversing prior loss of ₹738 crore)
This growth and profitability paved the way for a public limited company conversion and eventual marketplace listing .
UPI Market Leadership
PhonePe continues to lead India’s UPI ecosystem. In May 2025, it captured:
- 50% of UPI value (₹12.56 lakh crore)
- 47% of UPI volume
Despite row-the-boat policy cuts and increasing competition, it remains well ahead of rivals like Google Pay (~37%).
Why PhonePe Matters to Founders
- Customer-first scale: Expanded from urban UPI users to feature-phone users—building inclusion into growth plans.
- Platform play: Evolved from payments to commerce and fintech, leveraging core strengths while maintaining trust.
- Profit through discipline: Structured spending and operations to become profitable before IPO.
- Indianize global tech: Built infrastructure domestically, aligning with data localization and regulatory standards.
What’s Next?
- IPO expected in late 2025 or early 2026 with a target valuation of $15 billion.
- Continued expansion into lending, insurance, investments, and commerce.
- Deeper reach via feature-phone users and quick commerce footprint.
Final Word
PhonePe’s journey reflects the power of purpose-led innovation— combining cutting-edge tech, financial inclusion, and business discipline to create a resilient ecosystem. As it readies for the stock exchanges, PhonePe embodies the new wave of Indian startups: scaled, profitable, and ready to lead anew.
