PhonePe gets SEBI nod for IPO; targets ₹10,000-crore OFS

PhonePe’s IPO push comes at a time when it continues to consolidate its leadership in India’s fast-growing digital payments ecosystem

Payments firm PhonePe has secured clearance from SEBI to proceed with its initial public offering, according to sources close to the development. The firm plans to raise approximately ₹10,000 crore through an offer for sale mechanism.

The company will soon submit an updated draft prospectus to regulators. This follows its initial confidential filing in September—a preferred approach among large firms to maintain financial confidentiality until advanced listing stages.

Existing stakeholders including Walmart, Tiger Global, and Microsoft plan to divest portions of their holdings through the OFS, potentially diluting their combined ownership by 10%. Leading financial institutions Kotak Mahindra Capital, Citi, Morgan Stanley, and JP Morgan are managing the listing process.

Market leadership fuels IPO prospects

This public listing initiative coincides with PhonePe strengthening its position in India’s expanding digital payments market. The platform currently dominates nearly 45% of UPI transactions—surpassing Google Pay’s 35% market presence. As UPI facilitates over 85% of India’s digital payments, the infrastructure remains central to retail transaction ecosystems.

Investors view PhonePe’s sustained market leadership as a stabilizing factor within India’s volatile fintech sector, despite increasing competitive pressures from well-funded rivals.

Recent secondary market activity underscores investor confidence. General Atlantic increased its stake from 4.4% to 9% through a $600 million secondary acquisition last year. The transaction addressed employee stock option obligations without new capital infusion, bringing the firm’s total PhonePe investments to $1.15 billion since 2023.

Digital enterprises return to public markets

PhonePe’s listing plans emerge amidst renewed interest in technology IPOs. Investment platform Groww debuted last year with a $7.5 billion valuation, currently trading at $10.5 billion. Fintech firm Pine Labs recently concluded its ₹3,900-crore IPO with 2.5-times oversubscription earlier.

Market analysts suggest these successful listings have revitalized investor appetite for technology enterprises, creating favorable conditions for PhonePe’s market entry.

Published on January 20, 2026