As PhonePe moves closer to its public listing, its updated draft red herring prospectus (DRHP) outlines how regulatory changes and shareholder liquidity events have reshaped the company’s revenue mix over the past year.
The filing shows that PhonePe has seen secondary share transactions worth Rs 5,771 crore since 2023, providing liquidity to early shareholders ahead of the IPO.
A significant portion of this took place in September 2025, when co-founders Sameer Nigam and Rahul Chari executed a Rs 3,937 crore secondary sale, with the shares acquired by General Atlantic. The transaction allowed partial monetisation for the founders while keeping them invested in the company’s long Follow Startupbydoc for daily startup insights, funding news, IPO analysis, and business breakdowns.term growth.
Exit From Credit Card Rent Payments After RBI Communication
Alongside shareholder exits, PhonePe has also exited certain payment categories following regulatory intervention.
According to the DRHP, the company discontinued credit card payments for rent and related categories in September 2025 after receiving regulatory communication from the Reserve Bank of India under the payment aggregator framework.
The impact of this decision was material. Revenue from rent and related categories stood at Rs 518 crore in the six months ended September 2025, while the segment contributed Rs 1,262 crore in FY25. During FY25, rent-related payments accounted for 8.92% of PhonePe’s total gross margins, making it a meaningful contributor prior to the exit.
Real Money Gaming Revenue Switched Off Post New Law
PhonePe has also fully exited revenue streams linked to real money gaming (RMG) following legislative changes.
As per the DRHP, the company stopped earning revenue from advertising and payment gateway services associated with RMG after the Promotion and Regulation of Online Gaming Act, 2025 came into force on August 22, 2025. Consequently, PhonePe’s financials from October 2025 onwards exclude any contribution from the segment.
RMG revenue stood at Rs 70 crore in H1 FY26, while the segment contributed Rs 245 crore in FY25.
Rs 1,512 Cr Revenue Streams Shut Ahead of IPO
With both rent-related payments and real money gaming now excluded, PhonePe has effectively shut down revenue streams that together contributed Rs 1,512 crore in FY25.
While the exits are likely to weigh on near-term topline growth, they also reduce regulatory risk as the fintech sharpens its focus on core UPI payments and financial services ahead of its IPO.
The DRHP signals a deliberate clean up of the business model as PhonePe enters the public market phase, prioritising regulatory certainty and long-term sustainability over marginal revenue lines.
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