PhonePe Clears Major Hurdle with SEBI Approval for Public Offering
Digital payments giant PhonePe, backed by retail titan Walmart, achieved a significant regulatory milestone on Tuesday. The Securities and Exchange Board of India (SEBI) granted formal approval for the company's initial public offering. This green light represents a crucial step forward for one of the most eagerly awaited fintech listings in the country.
Confidential Filing Paves the Way for IPO Process
The market regulator's clearance follows PhonePe's confidential submission for an IPO back in September, as reported by Reuters. With this approval secured, the company is now poised to file its Updated Draft Red Herring Prospectus in the near term. This document will formally initiate the public listing process, setting the stage for the actual share sale.
IPO Structure: Pure Offer for Sale by Existing Shareholders
According to details from news agency PTI, the proposed IPO will take the form of a complete Offer for Sale by current shareholders. This means there will be no fresh issue of shares as part of the offering. Consequently, PhonePe will not raise any new primary capital through this public listing. The funds will instead go directly to the selling shareholders.
Dominant Position in India's Digital Payments Ecosystem
PhonePe currently commands a formidable position within India's digital payments landscape. The platform holds more than 45 percent of the market share in Unified Payments Interface transactions. Recent data from the National Payments Corporation of India reveals the scale of its operations. In December 2025 alone, PhonePe processed a staggering 9.8 billion transactions through its network.
Strong Financial Performance Bolsters Listing Prospects
The company's financial metrics show robust growth heading into the public offering. For the fiscal year 2024-25, PhonePe reported revenue of Rs 7,115 crore. This figure represents a substantial 40 percent increase compared to the previous year. More importantly, the company achieved free cash flow positivity during this period, with operating cash flow reaching Rs 1,202 crore.
PhonePe's adjusted profit after tax, excluding expenses related to employee stock options, more than tripled to Rs 630 crore. This financial strength provides a solid foundation as the company prepares for its market debut.
Industry Impact: A Potential Benchmark for Fintech Sector
Market observers believe PhonePe's public listing could establish an important benchmark for India's rapidly expanding digital payments and fintech industry. The successful execution of this IPO might potentially open doors for other fintech unicorns considering public market entry. The listing comes at a time when investor appetite for technology and digital payment companies remains strong, despite broader market fluctuations.
The SEBI approval marks just the beginning of PhonePe's journey toward becoming a publicly traded entity. Market participants will now watch closely as the company moves through subsequent regulatory steps before its eventual listing on Indian stock exchanges.
