Digital payments company PhonePe has received approval from market regulator Securities and Exchange Board of India (SEBI) to launch its Initial Public Offering (IPO), according to a Reuters report citing sources familiar with the matter.
The company had earlier submitted its draft IPO papers through the confidential pre-filing route in September last year.
This route allows companies to file documents privately before making them public, giving them flexibility in timing and disclosure while testing investor interest.
Stake Sale by Existing Investors
Reports indicate that some of PhonePe’s major existing shareholders — including Walmart, Microsoft, and Tiger Global — may partially dilute their stakes through the IPO.
Such stake sales are common in large public offerings, as early investors look to monetize part of their holdings while still retaining long-term exposure to the company’s future growth.
PhonePe is majority-owned by Walmart, which acquired the fintech firm as part of its acquisition of Flipkart.
Over the years, Walmart has continued to invest in strengthening PhonePe’s position in India’s rapidly expanding digital payments ecosystem.
Strong Focus on Digital Payments
Founded in 2015, PhonePe has grown into one of India’s largest fintech platforms.
The company operates primarily on India’s Unified Payments Interface (UPI) network, a real-time payment system that has transformed how Indians send and receive money.
Today, PhonePe is the market leader on UPI in terms of transaction volume. By December 2025, the company is expected to hold around 45% market share in UPI transaction volumes, further strengthening its dominance in the sector.
In its draft papers submitted to SEBI, PhonePe emphasized that digital payments will remain its core growth engine. The company plans to:
Expand its technology platform
Enhance product offerings
Increase its active user base
Strengthen merchant partnerships
Invest in financial services expansion
India’s digital payments landscape is witnessing rapid growth. The total addressable market (TAM) for digital consumer payments in India was estimated at ₹301 trillion in FY2025.
This market is projected to grow significantly, reaching between ₹602 trillion and ₹681 trillion by 2030.
This expected surge reflects increasing smartphone penetration, rising internet usage, supportive government policies,
and greater adoption of cashless payment methods across urban and rural areas.
Strong User and Merchant Base
PhonePe has built a powerful network of users and merchants across the country.
According to data from the National Payments Corporation of India (NPCI), out of 2,160 crore total UPI transactions recorded in August, 9.8 billion transactions were processed through PhonePe alone.
This highlights the company’s dominant position in the UPI ecosystem.
The company currently has more than 600 million registered users. In addition, it provides digital payment solutions to approximately 50 million merchants nationwide — ranging from small neighborhood shops to large retail chains.
Beyond peer-to-peer payments, PhonePe has expanded into various financial services, including:
Insurance distribution
Mutual fund investments
Gold purchases
Lending partnerships
Bill payments and recharges
By diversifying its offerings, the company aims to increase customer engagement and improve revenue streams beyond transaction-based income.
What the IPO Means
The upcoming IPO is expected to be one of the largest fintech listings in India. It will not only provide liquidity to existing investors but also help PhonePe raise fresh capital to:
Strengthen its competitive position
Invest in new technologies
Expand into additional financial services
Compete with other fintech players in the Indian market
As India continues its transition toward a cash-light economy, companies like PhonePe are expected to play a crucial role in shaping the future of digital finance in the country.
With strong market leadership, a massive user base, and sustained growth in the digital payments sector, PhonePe’s IPO is likely to attract significant attention from both domestic and global investors.
