Is PhonePe a Unicorn? How It Became India’s Leading Fintech Powerhouse

In 2016, the e-commerce giant Flipkart acquired PhonePe, marking a significant shift in the fintech space. According to the latest data from the National Payment Corporation of India (NPCI), PhonePe has emerged as the leading UPI (Unified Payments Interface) app, both in terms of transaction volume and value. In December 2024 alone, PhonePe processed over 798.4 crore transactions, representing a 7.8% growth from the 740.1 crore transactions in November 2024.

PhonePe Group has become India’s top fintech company, with its flagship product, the PhonePe digital payments app, launched in August 2016. The app rapidly gained popularity, establishing PhonePe as the country’s go-to consumer payments platform. Beyond its dominance in digital payments, PhonePe has expanded into various financial services, including Insurance, Lending, and Wealth management, along with venturing into new consumer tech products such as Pincode and the Indus Appstore.

Is PhonePe a Unicorn?

In 2018, PhonePe achieved unicorn status just three years after its inception. The company has raised over $1 billion in funding since 2016, with the most recent infusion of $297 million from its parent company, Flipkart, in Singapore.

PhonePe Recent Business Developments

On April 15, 2025, PhonePe launched its innovative UPI Circle feature, which allows users to create a circle for making payments on behalf of family, friends, or trusted contacts. This feature also enables dependents to generate their own UPI IDs without needing a linked bank account, thereby providing a secure digital payment solution for those with limited access to financial services.

Further expanding its offerings, PhonePe launched its PINCODE app on April 21, a hyperlocal e-commerce platform that now provides a 24-hour online medicine delivery service in Bangalore, Mumbai, and Pune. This service ensures that customers can access over the counter and prescription medicines at any time, with delivery from the nearest medical shop within just 10 minutes.

On March 11, 2025, PhonePe reached a major milestone, surpassing 600 million (60 crore) registered users. As the company celebrates its 10th anniversary this year, it continues to scale, providing millions of customers with a wide range of financial services and technology solutions.

Also Read: List of 16 Fintech Unicorn Startups in India in 2025: Razorpay, PhonePe & More

Conclusion

PhonePe has shown impressive growth and innovation in the Indian fintech ecosystem. From its acquisition by Flipkart to becoming a unicorn and expanding its offerings, the company continues to evolve and shape the future of digital payments and financial services in India. With constant innovation, such as the UPI Circle and PINCODE app, PhonePe is positioning itself as a leader in the digital financial services landscape, setting new standards for convenience and accessibility for users across the country.

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