According to reports, General Atlantic invested roughly $600 million in PhonePe through a secondary transaction. This year, the deal seems to be among the biggest secondary transactions in India's startup scene.

Key Highlights

• General Atlantic invested US $600 million in a secondary deal, boosting its stake in PhonePe from 4.4 % to around 9 %.
• The transaction was structured to allow employees to exercise ESOPs and meet tax obligations, with no liquidity provided to founders or early-investors. 

According to sources, stated, "The transaction was executed to help employees exercise their ESOPs and meet tax obligations related to the same. No founders or employees received any liquidity as part of this transaction."

General Atlantic contributed $100 million to PhonePe's final equity round in May 2023 as part of the company's larger fundraising efforts, which valued the fintech giant at more than $12 billion.

General Atlantic's ownership of PhonePe has grown from 4.4% to approximately 9% as a result of the investment.

After submitting a confidential draft red herring prospectus (DRHP) to SEBI for a Rs 12,000 crore IPO, the Walmart-owned business has been getting ready for its public listing. According to media reports, Walmart, Microsoft, and Tiger Global will dilute their holdings in a pure OFS (offer for sale).

Also Read: PhonePe Reports Rs 7,115 Cr Revenue and Rs 630 Cr PAT in FY25

In FY25, PhonePe reported revenue of Rs 7,115 crore and adjusted profit after tax (PAT) of Rs 630 crore. As of September, PhonePe's share of the digital payments market was 45.64% by volume and 48.38% by value, according to NPCI data.