Walmart-backed digital payments company PhonePe has received approval from the Securities and Exchange Board of India to move ahead with its initial public offering, according to people familiar with the matter.
The Bengaluru-headquartered fintech had confidentially pre-filed its Draft Red Herring Prospectus in September last year, opting for SEBI’s non-public review route. The proposed public issue is expected to raise up to Rs 12,000 crore, with the listing likely to value the company at around $15 billion.
The IPO is expected to be largely structured as an offer for sale, allowing existing shareholders such as Walmart, Tiger Global, Microsoft and other early investors to pare their holdings. No formal timeline for the issue has been announced yet.
PhonePe last raised $600 million through a secondary transaction led by General Atlantic. Its most recent primary capital infusion was a $100 million round in May 2023, also led by General Atlantic, which valued the company at $12 billion.
Also Read:- PhonePe shuts Pincode’s B2C operations, pivots entirely to merchant focused B2B model
Operationally, PhonePe continues to strengthen its leadership in India’s digital payments ecosystem. According to data from the National Payments Corporation of India, the platform processed 9.8 billion customer-initiated UPI transactions worth Rs 13.61 lakh crore in December alone.
The company has also sharpened its strategic focus in recent quarters. It recently transitioned Pincode from a consumer-facing local commerce app to a B2B merchant solutions platform, stepping away from the ONDC-based B2C model it launched in April 2023.
On the financial front, PhonePe reported strong growth in FY25. Operating revenue rose 40.5 percent year on year to Rs 7,115 crore, up from Rs 5,064 crore in FY24. Adjusted profit, excluding ESOP-related costs, surged nearly five times to Rs 630 crore, compared with Rs 117 crore in the previous fiscal year.
With regulatory clearance now in place, PhonePe is expected to advance preparations for one of India’s largest fintech listings, at a time when investor focus has returned to profitable, scaled digital platforms.
Stay connected with FinanceNeoteric on WhatsApp Channel for expert coverage and in-depth financial stories.
Disclaimer: This post is for general informational purposes only. It does not constitute financial advice. Please consult a qualified professional before making financial decisions.
