PhonePe gears up for market debut after SEBI nod for ₹12,000-crore IPO

The Walmart-owned fintech has secured regulatory clearance for a major offer-for-sale, positioning itself among the largest startup listings in India as investor interest in new-age digital businesses gathers momentum.

India’s digital payments major PhonePe has received approval from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO), according to reports citing people familiar with the matter. The proposed issue is expected to raise around ₹12,000 crore through an offer-for-sale (OFS), making it one of the largest public listings by an Indian startup.

If executed at the planned size, the IPO would rank as the second-biggest startup debut on Dalal Street, reflecting both the scale of PhonePe’s operations and the growing appetite for consumer-facing technology firms in the public markets.

Offer structure and timeline

The IPO will be structured entirely as an OFS, allowing existing shareholders to dilute part of their holdings without the company raising fresh capital. Major investors, including Walmart, Tiger Global and Microsoft, are expected to participate in the share sale, sources have indicated.

PhonePe had confidentially filed its draft IPO documents with SEBI in September last year and is now preparing to submit updated papers in the coming days. The fintech firm is targeting a stock market listing as early as April, subject to market conditions. The company was last valued at around $12 billion in private funding rounds.

Startups line up for listings

The move comes at a time when India’s primary markets are seeing renewed activity from new-age companies seeking liquidity and investor exits. Several venture-backed firms are lining up to tap public markets, encouraged by strong domestic participation despite global volatility.

Software-as-a-service firm Amagi Media Labs and logistics startup Shadowfax are among the companies expected to list soon. Other high-profile startups, including quick-commerce player Zepto and hospitality platform Oyo, are also preparing IPO filings, while Flipkart, another Walmart-owned entity, is widely expected to explore a public listing this year.

Expanding beyond payments

PhonePe operates in a competitive fintech landscape alongside rivals such as Google Pay and Paytm. Since completing its separation from Flipkart in 2022 and relocating its headquarters from Singapore to India, the company has diversified beyond digital payments into insurance, wealth management, lending and stockbroking.

With India’s underbanked population, rising smartphone adoption and increasing comfort with digital financial services, the fintech sector continues to offer long-term growth opportunities—factors likely to shape investor interest in PhonePe’s public debut.