Digital payments company PhonePe has received approval from market regulator Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO), according to Reuters, citing sources.
The company previously submitted draft papers for its public offering through confidential routes in September last year.
According to reports, it is expected that existing shareholders such as Walmart, Microsoft, and Tiger Global may sell some of their stake through this IPO.
The company’s focus is on digital payments. PhonePe, a fintech company owned by American retail chain Walmart, was launched in 2015.
Today, its popularity has grown to such an extent that it has emerged as the top payments platform on India’s Unified Payments Interface (UPI) network.
By December 2025, the platform will have approximately 45% market share by transaction volume.
In its draft papers submitted to SEBI, PhonePe has clearly stated that digital payments will continue to be the company’s growth driver.
To this end, the company is focusing on expanding its platform, increasing its user base, and expanding its market footprint.
By fiscal year 2025, the total addressable market for digital consumer payments in India was estimated at ₹301 trillion. It is projected to reach ₹602 to ₹681 trillion by 2030.
PhonePe has built a strong base
Data from the National Payments Corporation of India (NPCI) shows that of the 2,160 crore total UPI transactions recorded in August, 9.8 billion were processed through PhonePe.
The company has built a large and robust user base with over 600 million registered users and provides digital payment solutions to approximately 50 million merchants across the country.
