PhonePe has taken a key step toward going public. The Walmart-backed digital payments company has received approval from Securities and Exchange Board of India (SEBI) to proceed with its initial public offering, according to sources familiar with the matter.
This clearance brings PhonePe closer to launching one of the most closely watched IPOs in India’s fintech space.
IPO plans take shape
The Bengaluru-based company had confidentially filed its draft red herring prospectus in September last year. Following SEBI’s approval, PhonePe is now expected to raise ₹12,000 crore through the public issue.
Most of the offering is likely to come through an Offer for Sale (OFS). Existing investors, including Walmart, Tiger Global, and Microsoft, may sell part of their stakes.
Based on current estimates, the listing could value PhonePe at around $15 billion.
Recent funding and valuation
Before moving toward the IPO, PhonePe strengthened its balance sheet through private funding.
Earlier, the company raised $600 million in a secondary transaction led by General Atlantic. Its last primary funding round came in May 2023, when it secured $100 million, also led by General Atlantic, at a valuation of $12 billion.
These rounds helped set the benchmark for the expected public valuation.
Strong position in the UPI ecosystem
At the same time, PhonePe continues to dominate India’s digital payments landscape.
According to data from National Payments Corporation of India (NPCI), the company processed 9.8 billion UPI transactions in December alone. The total value of these transactions stood at ₹13.61 lakh crore, underscoring PhonePe’s scale and reach.
Business model adjustments
Alongside payments, PhonePe has also adjusted its broader business strategy. Recently, the company shifted its Pincode platform away from a consumer-facing local commerce model. Instead, it repositioned the platform as a B2B, merchant-focused offering, moving away from its earlier marketplace approach.
This change reflects a sharper focus on core strengths rather than experimental expansions.
Financial performance shows momentum
Financially, PhonePe reported strong growth in FY25.
Operating revenue rose 40.5% year-on-year to ₹7,115 crore. Meanwhile, adjusted profit jumped nearly five times to ₹630 crore, excluding ESOP-related costs.
Taken together, the numbers highlight improving efficiency and profitability ahead of the planned listing.
With SEBI approval now in hand, PhonePe has crossed a major regulatory hurdle. As the company prepares for the next phase, its scale in UPI, improving financials, and backing from global investors place it firmly in focus ahead of a potential market debut.
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