PhonePe's Merchant & Lending Engine Powers Pre-IPO Push Despite Profitability Squeeze
PhonePe draws 86% of its ₹7,000 Cr FY25 revenue from payments while merchant services, lending (₹14,270 Cr facilitated) and insurance emerge as fastest-growing verticals. With 47% UPI share, 700 Mn+ consumers and 92 Lakh payment devices, it monetises kiranas and retailers ahead of IPO — but heavy fintech competition keeps profits elusive.
Analysis of PhonePe's monetisation across UPI, merchant services, lending, insurance and wealthtech ahead of its IPO. Merchant payments and financial services are its fastest-growing verticals, powering payments to kiranas and retailers, though profitability remains a challenge amid heavy fintech competition.