Digital payments leader PhonePe has appointed Shivnath Thukral as its new vice president for public policy and government affairs. Thukral will lead the company’s efforts to engage with Indian policymakers, regulators, and key government institutions.
This strategic hire signals PhonePe’s intent to strengthen its voice in India’s evolving financial regulatory landscape. With fintech under increasing government scrutiny, companies like PhonePe are focusing more on policy alignment and advocacy.
Brings Meta Experience
Before joining PhonePe, Thukral served as the VP of public policy at Meta, where he worked on digital regulation, financial inclusion, and tech governance. He also held leadership roles in influential industry forums like the Broadband India Forum (BIF), USISPF, and PAFI, gaining recognition for his expertise in shaping India’s digital policy.
His rich experience across regulatory and communication roles is expected to help PhonePe navigate critical areas, including UPI monetisation rules, digital payments regulation, and broader fintech growth strategy.
IPO Plans Advance
Thukral’s appointment comes just as PhonePe prepares for its much-anticipated IPO. The company is expected to file its draft red herring prospectus (DRHP) by August 2025. Reports suggest that the offering could raise $1.5 billion and value the company at around $15 billion.
PhonePe redomiciled to India in 2022 to meet local listing requirements, a move that reflects its long-term commitment to the Indian market.
UPI Dominance Continues
PhonePe continues to lead India’s UPI ecosystem. In June 2025 alone, it processed 8.55 billion UPI transactions, accounting for nearly half of all UPI transaction volume in the country. The total value processed through PhonePe during that month was Rs 11.99 lakh crore.
The entire UPI ecosystem saw 18.4 billion transactions in the same period, which means PhonePe managed around 46.5% of the total volume and 50% of the total value.
Revenue Challenges Remain
While PhonePe dominates the UPI space, revenue remains a challenge. Current UPI policy does not permit platforms to charge merchants for transactions, limiting monetisation potential. With 95% of its revenue linked to digital payments, policy changes around merchant discount rates (MDR) are crucial for PhonePe’s growth.
This is where Thukral’s policy expertise could prove critical, helping PhonePe advocate for sustainable business models within India’s regulatory framework.
Expands Fintech Offerings
To reduce its reliance on UPI, PhonePe has expanded into new services like insurance, digital lending, and mutual funds. It has also launched Pincode, a hyperlocal shopping app, and Indus Appstore, a Made-in-India alternative to global app marketplaces.
These efforts reflect PhonePe’s vision of evolving from a payment provider to a full-stack digital financial and consumer tech platform.
Who Invents UPI in India
The Unified Payments Interface (UPI) was developed by the National Payments Corporation of India (NPCI), with support from the Reserve Bank of India (RBI) and the Indian government. It was launched in April 2016 to simplify and speed up digital transactions across the country. Today, it powers billions of payments every month and has become a global model for instant payments.
