Super Money’s Growth Casts Shadow on PhonePe, Amid Promoter Overlap

As PhonePe prepares for a pure Offer for Sale (OFS) public listing, the market conversation appears to be shifting from scale and dominance to sharper questions around future growth. Adding to the scrutiny is the rising momentum of Super Money, a newer UPI payments player backed by the same promoter group, which is increasingly drawing attention for its faster traction and strategic focus.

PhonePe’s Draft Red Herring Prospectus (DRHP) lays out the overlap. In its risk disclosures, the company notes that its promoters hold interests in other entities operating in similar lines of business. Among them is Scapic Innovations Private Limited, a promoter group company that runs Super Money, formally acknowledging the presence of a closely aligned payments venture within the same ecosystem.

The prospectus further states that PhonePe ‘cannot provide assurance that it will be prioritised by its promoters, and that promoter investment decisions could adversely impact PhonePe’s business and prospects’. In effect, the company acknowledges that competing bets can exist within the same group.

Against this backdrop, UPI data becomes particularly relevant not just as a measure of market share, but as an indicator of where promoter attention and capital are likely to concentrate. According to NPCI, PhonePe recorded 9.7 billion UPI transactions in December, growing by 5.11% month-on-month, while transaction value rose 6.73%. In comparison, Super Money processed 286 million transactions in December, expanding 8.22% month-on-month, with transaction value rising 11.13%. While PhonePe’s absolute volumes remain significantly larger, Super Money is expanding at a faster pace across both transaction volume and value.
The IPO structure adds another layer to the debate. The proposed issue is entirely an Offer for Sale, meaning PhonePe itself will not receive any fresh capital from the listing. All proceeds will go to the selling shareholders, while the Bengaluru-based fintech continues to rely on internal cash in the bank and free cash flows to fund operations.
That detail assumes greater significance given the sustained investments and losses in newer verticals such as insurance and lending, businesses the company is betting on to drive its next phase of profitability.
PhonePe’s disclosures further underline that merchant growth has remained broadly flat over the past three years. Over three years, the number has barely seen any substantial growth. It reported monthly active merchants of 11.43 million in FY23, 11.45 million in FY24, 11.31 million in FY25. For the six months ended September 30, 2025, the figure declined to 11.11 million from 11.27 million a year earlier.

Profitability has weakened sharply. Adjusted EBITDA margin for the six months ended September 30, 2025 stood at 6.48%, down from 15.74% in the corresponding period a year earlier. While margins can fluctuate due to investment cycles, the decline indicates rising ecosystem and expansion costs. The DRHP also notes that while the core platform has improved, new platform bets remain loss-making. 

PhonePe’s prospectus clearly states that it cannot assure prioritisation by its promoters, and that promoter investment choices could support other businesses. As PhonePe approaches the public markets, the question is not whether it is large. It is whether it will remain the primary growth engine within its own promoter ecosystem.