PhonePe gets SEBI nod for IPO, clears path for one of India’s biggest fintech listings
- 21st January 2026
- 11:00 AM
- 3 min read
Summary
Walmart-backed fintech major PhonePe has received SEBI approval for its initial public offering, clearing a key regulatory hurdle ahead of a potential listing later this year. The IPO is expected to be a pure offer for sale, with existing shareholders likely to pare stakes as the company targets a valuation of around $15 billion.Mumbai | January 21
PhonePe has received regulatory approval from Securities and Exchange Board of India for its initial public offering (IPO), paving the way for one of India’s largest fintech listings since Paytm’s debut in 2021, according to people familiar with the development.
The Bengaluru-based digital payments firm is expected to raise ₹11,000–12,000 crore through the IPO, largely via an offer for sale (OFS), with no fresh equity issuance planned.
The offering could value the company at around $15 billion, subject to final pricing and anchor allotment.
IPO filing status and expected timeline
PhonePe is likely to file its updated draft red herring prospectus (DRHP) publicly in the coming days, after having submitted its papers through SEBI’s confidential filing route in September last year. The listing is expected to take place around March or April, depending on market conditions.
Who is selling in the IPO
The IPO is expected to see participation from existing investors, including Walmart, Tiger Global, and Microsoft, with a combined stake dilution estimated at about 10%.
One of India’s largest new economy IPOs
If completed at the proposed valuation, PhonePe’s public offering would rank as the second-largest new-economy IPO in India, after Paytm, which listed in 2021 at a valuation of around $20 billion.
More recent listings from the digital economy include Swiggy and Groww, reflecting renewed investor interest in scaled consumer-tech platforms.
PhonePe’s dominant UPI position
PhonePe remains the market leader in India’s UPI ecosystem, with an estimated 45% share of transaction volumes, ahead of competitors such as Google Pay. The platform processes close to 10 billion transactions a month, with transaction values exceeding ₹12 lakh crore.
Payments continue to anchor the company’s business model, contributing over 90% of total revenue, even as PhonePe expands into adjacent verticals such as insurance distribution, lending, and wealth products through platforms like share.market and Pincode.
Financial snapshot
For FY25, PhonePe reported a 41% rise in revenue from operations to ₹7,148.6 crore, while narrowing its consolidated loss as cost growth moderated. The company had been valued at $12 billion in its last funding round in 2023 and has raised close to $1 billion from investors including General Atlantic and Tiger Global over the years.
Long road to listing
PhonePe has been preparing for a public listing over the past two years.
With SEBI’s approval now in place, PhonePe joins a growing pipeline of large fintechs testing public market appetite, as investors weigh scale, profitability paths and valuation discipline.
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