PhonePe has crossed 50 million lifetime registered merchants on its platform on April 28, the digital payments firm has said. The merchant base now spans over 98 percent of India’s postal codes, including small towns and rural markets.
The milestone comes as the company prepares to go public. PhonePe has filed an updated draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India and plans to launch an initial public offering subject to approvals and market conditions.
PhonePe started by offering QR code-based payment solutions to small businesses and gradually expanded its merchant offerings to include point-of-sale (POS) devices, smart speakers and access to loans. Its business app allows to manage payments and adopt additional services over time.
“Reaching 50 million merchants is a significant milestone in our effort to make financial services more accessible to merchants across India,” said Yuvraj Singh Shekhawat, chief business officer, merchant business at PhonePe.
The expansion has been supported by on-the-ground sales network and local-language support, which helped drive adoption among small businesses and kirana stores transitioning from cash-based transactions, the company said.
PhonePe operates across payments, lending, insurance distribution and other financial services, and competes with players such as Google Pay and Paytm in India’s digital payments market.
Founded in 2016, PhonePe operates across payments, financial services, and digital distribution. It competes with players such as Google Pay and Paytm in India’s digital payments market, where companies are looking to expand beyond payments into lending, insurance and wealth products to drive revenue.