PhonePe gets SEBI go-ahead for IPO; listing process moves closer for India’s biggest UPI player
Walmart-backed PhonePe has received SEBI approval for its IPO, a major step toward one of India’s most-watched fintech listings. Reports said the issue is expected to be an offer-for-sale by existing shareholders, with the company preparing to file updated draft papers.
Digital payments major PhonePe has received regulatory approval from the Securities and Exchange Board of India (SEBI) for its initial public offering, pushing one of India’s most anticipated fintech listings closer to launch. The approval was reported on January 20, 2026, and is being seen as a key marker for how public markets may value large, consumer-scale UPI businesses.
PhonePe had earlier filed confidentially for the offering, and the next procedural step is expected to be the filing of an Updated Draft Red Herring Prospectus (UDRHP). Industry watchers say this is the phase where timelines become clearer and the transaction moves from “in-principle” to execution mode.
Offer structure, market position and numbers in focus
The proposed IPO is expected to be entirely an offer for sale (OFS) by existing shareholders, meaning the company would not raise fresh primary capital through the issue. That structure places greater emphasis on shareholder exits, float size, and long-term profitability signals rather than on immediate balance-sheet funding.
PhonePe’s scale in UPI remains its strongest narrative. The company has been described as holding more than 45% share in UPI transactions, and reports said it processed 9.8 billion transactions in December 2025 alone, underscoring its high-frequency consumer footprint and distribution advantage.
Financial performance will be closely read by investors. PhonePe reported revenue of Rs 7,115 crore in FY24-25, reflecting 40% year-on-year growth, and also reported turning free cash flow positive with operating cash flow of Rs 1,202 crore. The company also cited an adjusted profit after tax figure (excluding ESOP-related costs) that rose sharply, helping build the case that large payments platforms can improve unit economics as they mature.