In a landmark development for the Indian financial technology sector, PhonePe has officially received the green. Light from the Securities and Exchange Board of India (SEBI) for its Initial Public Offering (IPO). This approval marks the removal of the most significant regulatory hurdle for the Walmart-backed digital payments giant, while as investors eagerly await the listing, PhonePe is positioning itself to launch one of the largest fintech IPOs the Indian market has ever witnessed, signaling a solid appetite for high-growth tech platforms.
A Massive $1.
According to industry reports, PhonePe is looking to raise approximately $1. 5 billion through this public listing. While the final amount may fluctuate based on market conditions at the time of the launch, the scale of the issue is unprecedented for a private payment player in India, while the IPO is expected to be primarily an Offer for Sale (OFS), allowing early backers and major stakeholders like Tiger Global, Microsoft, and Walmart to dilute a portion of their holdings, thereby providing liquidity and an entry point for public shareholders.
Sky-High Valuation and Investor Trust
PhonePe was last valued at a staggering $14. 5 billion following a $600 million funding round led by General Atlantic in late 2024. This valuation reflects a steady climb from $12. 5 billion in May 2023, showcasing the immense confidence global investors have in the company’s scalability, while the consistent rise in valuation despite global economic fluctuations highlights PhonePe's dominance in the Indian digital ecosystem and its ability to maintain growth momentum.
Dominating the Digital Payment Landscape
Since its inception in December 2015, PhonePe has transformed from a simple UPI app into India’s largest digital payments platform. With over 43. 5 crore registered users, nearly every fourth Indian is a PhonePe user, while the company’s reach is equally impressive on the merchant side, with a network of 3. 5 crore shopkeepers spanning across Tier-2, Tier-3, and rural areas, while currently, PhonePe’s services cover an incredible 99% of India’s postal codes, making it a household name.
Financial Performance and Growth Trajectory
Beyond peer-to-peer transfers, PhonePe has successfully diversified into insurance, mutual funds, and stock broking. It currently processes over 45% of all transactions on the Bharat Bill Payment System (BBPS), while financially, the company is on a path to profitability; its losses narrowed to ₹1,727 crore in FY25 from ₹1,996 crore the previous year. Simultaneously, its operating revenue surged by 40% to reach ₹7,115 crore, proving that its monetization strategies are yielding results.
What Investors Should Expect Next
The IPO process will be managed by top-tier investment banks, including Kotak Mahindra Capital, J. P. Morgan, Citigroup, and Morgan Stanley. With the SEBI nod secured, the timing of the actual listing will now depend on broader market sentiment and macroeconomic factors. For retail and institutional investors, the PhonePe IPO represents a rare opportunity to own a piece of India's digital revolution and a company that sits at the heart of the country's financial future.