PhonePe gets Sebi nod for IPO; Microsoft, Walmart to pare stake in OFS

Walmart-backed digital payments major PhonePe has received approval from capital markets regulator Sebi to proceed with its IPO, according to sources. This clears a key regulatory hurdle for what is expected to be one of the largest fintech listings in the Indian market. The approval comes at a time when investor interest in large, consumer-facing technology platforms is relatively stable despite the talk around valuations.

Earlier reports indicate that PhonePe is targeting around $1.5 billion through the public issue, even though the quantum of the fundraise could change closer to the IPO. The public offer will be a complete offer for sale (OFS), where Tiger Global, Microsoft and Walmart will offer part of their shares, sources said.

PhonePe’s last reported valuation stood at $14.5 billion following a $600 million funding round led by General Atlantic in late 2025. This marked a sharp step-up from its $12.5 billion valuation in May 2023, underlining renewed investor confidence in the company’s scale, market leadership and path to profitability.

Founded in December 2015, PhonePe has emerged as India’s largest digital payments platform over the past decade. The company currently has more than 43.5 crore registered users, meaning roughly one in four Indians uses PhonePe in some form. On the merchant side, it has onboarded close to 3.5 crore offline merchants across Tier 2, Tier 3 and smaller towns, with coverage extending to 99% of India’s pin codes.

The platform has also built a dominant position in the Bharat Bill Payment System, where it processes over 45% of all transactions on the BBPS network. In December 2025 alone, PhonePe processed 9.8 billion transactions, according to data released by the National Payments Corporation of India.

Beyond payments, PhonePe has steadily expanded into financial services since 2017. The company offers a range of mutual funds and insurance products, positioning itself as a broader financial services marketplace rather than just a payments app. This diversification has been central to its long-term strategy, especially as competition in core UPI payments intensifies.

Financially, PhonePe has shown signs of operating leverage. The company narrowed its net loss by 13.4% in 2024-25 to Rs 1,727 crore, compared with a loss of Rs 1,996 crore in the previous year. Operating revenue during the year rose 40% to Rs 7,115 crore from Rs 5,064 crore.Also Read: Rs 9 lakh crore wipeout! Sensex crashes over 1,000 points, Nifty below 25,250. Here are 5 factors pulling the stock market lower

The IPO will be managed by a consortium of global and domestic investment banks, including Kotak Mahindra Capital, JPMorgan Chase, Citigroup and Morgan Stanley.

With Sebi approval now in hand, PhonePe is likely to move towards launching its issue, although the timing will depend on the sentiments in the secondary market, which are going through a volatile period currently.

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