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PhonePe Diversifies Beyond Payments for IPO
29 Jan
Summary
- PhonePe aims to reduce payment vertical reliance for its IPO.
- Lending and insurance now contribute 11.55% of revenue.
- Company seeks RBI lending license after past attempts.
Fintech giant PhonePe is actively scaling its lending and insurance distribution businesses, aiming to lessen its dependence on its primary payments vertical. As of September 30, 2025, these diversified sectors accounted for 11.55% of the company's revenue, up from 3.58% in FY24, signaling substantial growth. This strategic shift is part of its preparation for a public listing scheduled for April 2026.
PhonePe has re-applied for a direct lending license from the Reserve Bank of India (RBI) in November 2025, following previous applications that were returned. Currently operating as a loan service provider, it has partnered with 56 banks and NBFCs, disbursing Rs 14,270 crore in loans in the first half of FY26.
The insurance distribution arm has also seen considerable expansion, selling 18.5 million policies by H1 FY26. The company aims to capture a larger share of India's growing loan and insurance markets, projected to expand significantly by FY30.
