Walmart-backed digital payments company PhonePe has received approval from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO), according to sources familiar with the matter.
The Bengaluru-based fintech firm had confidentially pre-filed its Draft Red Herring Prospectus (DRHP) in September last year. PhonePe is reportedly planning to raise up to ₹12,000 crore through the public issue.
The proposed IPO is expected to be largely structured as an Offer for Sale (OFS), with existing investors such as Walmart, Tiger Global, Microsoft, and others set to dilute their stakes. The listing could value PhonePe at around $15 billion.
A digital news platform reached out to PhonePe for comments, while another news portal was the first to report the development.
PhonePe last raised $600 million through a secondary transaction led by General Atlantic. Its most recent primary funding round was in May 2023, when it raised $100 million, also led by General Atlantic, at a valuation of $12 billion.
On the operations front, PhonePe has continued to strengthen its position in India’s UPI ecosystem. In December, the platform processed 9.8 billion customer-initiated transactions worth ₹13.61 lakh crore, according to data from the National Payments Corporation of India.
The company has also reworked its Pincode platform, shifting it from a B2C model to a B2B, merchant-focused offering. This marks a move away from its original local commerce initiative launched on ONDC in April 2023.
Financially, PhonePe reported strong growth in FY25. Operating revenue rose 40.5% year-on-year to ₹7,115 crore, compared to ₹5,064 crore in FY24. Adjusted profit, excluding ESOP-related costs, increased nearly 5 times to ₹630 crore from ₹117 crore in the previous year.
The SEBI approval marks a key step in PhonePe’s journey towards becoming one of India’s largest fintech listings.
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