Mumbai, March 7 -- Digital payments platform PhonePe has had a dream run by startup journeys. Founded 10 years ago by ex-employees at ecommerce giant Flipkart, the company is eyeing a valuation north of $10 billion in an initial public offer expected later in 2026.

Fired up by a bunch of engineers, who kept costs on a tight rein while attracting top notch talent, PhonePe has a unique challenge ahead of listing-its books now carry one of the highest stock-linked compensation burdens among Indian technology companies, potentially weighing on profitability.

PhonePe's combined employee stock options, or Esops, pool across employee and founder schemes totals about 77 million options, after excluding forfeited or lapsed grants.

If the compan...