India’s digital payments leader PhonePe has received approval from market regulator SEBI for its much-awaited initial public offering (IPO) on January 20, according to sources. The approval marks a major milestone for the Bengaluru-based fintech giant and sets the stage for one of the most significant listings in India’s new economy space.
The IPO is expected to value PhonePe at around $15 billion, with the company planning to raise nearly ₹12,000 crore ($1.35 billion) through a pure offer for sale (OFS). Moneycontrol first reported the development exclusively. PhonePe is now likely to file its updated Draft Red Herring Prospectus (DRHP) in the coming days, bringing the company closer to its debut on the Indian stock exchanges.
Credits: India IPO
A Big-Ticket Listing in India’s New Economy
PhonePe’s listing will be the second-largest new economy IPO in India, following Paytm’s blockbuster public issue in late 2021. Paytm’s IPO was valued at nearly $20 billion with a fundraising size of ₹18,000 crore, setting a benchmark for fintech listings in the country.
In comparison, Swiggy’s IPO, which took place in November 2024, raised ₹11,300 crore (about $1.35 billion), making PhonePe’s offering comparable in scale. With a targeted valuation of $15 billion, PhonePe’s IPO is expected to be a defining moment for India’s fintech sector, especially at a time when public markets have become more selective about profitability, governance, and long-term growth.
Dominant Force in India’s UPI Ecosystem
PhonePe enters the public markets as the undisputed leader in India’s UPI payments space, commanding around 45 percent market share. Its closest rival, Google Pay, holds roughly 35 percent, while the remaining share is split among players like Paytm, Amazon Pay, and new entrants backed by large conglomerates.
UPI has become the backbone of India’s digital payments revolution, processing over 85 percent of all digital transactions in the country. PhonePe alone handles close to 10 billion transactions every month, with a total transaction value exceeding ₹12 lakh crore. This scale and consistency make PhonePe’s business model particularly compelling for long-term investors, despite the zero-MDR (merchant discount rate) regime that limits direct monetisation of payments.
Payments Still Anchor Growth Despite Diversification
While PhonePe has aggressively diversified beyond payments, its core business remains the primary growth engine. Payments continue to account for over 90 percent of the company’s total revenue, underscoring the platform’s deep integration into everyday consumer behavior.
Over the last few years, PhonePe has expanded into multiple financial services verticals. These include share.market, its stock trading app; a lending platform; and a fast-growing insurance marketplace offering policies across health, life, and general insurance. The company is also experimenting with newer use cases, such as credit-linked payments and merchant-focused financial products, to boost monetisation.
Who’s Selling in the IPO
The IPO will be a pure OFS, meaning PhonePe itself will not raise fresh capital from the issue. Instead, existing shareholders will partially monetise their holdings. Walmart, Tiger Global, and Microsoft are expected to sell a combined 10 percent stake in the offering.
The IPO is being advised by a heavyweight consortium of investment banks, including Kotak Mahindra Capital, Citi, Morgan Stanley, and JP Morgan. Bankers had earlier targeted a listing valuation of up to $15 billion, reflecting renewed confidence in fintech IPOs after a period of market volatility.
Fintech IPOs: Lessons from the Past, Hope for the Future
India’s fintech IPO journey has been mixed. Paytm’s valuation dropped sharply after its listing, with the company currently valued at around $9.5 billion, down from its IPO valuation of $20 billion. However, other fintech listings have delivered stronger outcomes.
Groww, which listed late last year at a valuation of $7.5 billion, is now trading at around $10.5 billion, while PB Fintech has emerged as a standout success, with its valuation rising to about $9 billion from the $6 billion it listed at. More recently, Pine Labs’ IPO, sized at ₹3,900 crore, was subscribed nearly 2.5 times, signalling renewed investor appetite for profitable and scalable fintech models.
Credits: India IPO
A Defining Moment for India’s Payments Giant
PhonePe’s IPO comes at a crucial moment for India’s digital economy. With unmatched scale in UPI, strong brand recall, and expanding financial services offerings, the company represents the evolution of Indian fintech from growth-at-all-costs to scale-with-sustainability. If successful, PhonePe’s listing could reignite enthusiasm for large tech IPOs and reshape investor confidence in India’s new economy story.
