PhonePe’s IPO push comes at a time when it continues to consolidate its leadership in India’s fast-growing digital payments ecosystem
Payment major PhonePe has received approval from capital markets regulator SEBI to launch its initial public offering (IPO), according to people familiar with the matter. The company is targeting a fund-raise of around ₹10,000 crore, primarily through a pure offer for sale (OFS), they said.
PhonePe is expected to file an updated draft red herring prospectus (DRHP) in the coming days. This follows the Bengaluru-headquartered firm’s decision to file its IPO papers via the confidential route in September last year, a mechanism increasingly favoured by large issuers to keep financial and operational details private until closer to the listing.
The proposed IPO will see some of PhonePe’s existing shareholders pare their holdings. Walmart, Tiger Global and Microsoft are among the investors expected to participate in the OFS, which is likely to result in a combined dilution of around 10 per cent stake. Kotak Mahindra Capital, Citi, Morgan Stanley and JP Morgan have been appointed as advisors for what is expected to be one of the largest technology listings in India.
UPI dominance underpins listing case
PhonePe’s IPO push comes at a time when it continues to consolidate its leadership in India’s fast-growing digital payments ecosystem. The company commands about 45 per cent market share in the Unified Payments Interface (UPI) network, ahead of Google Pay’s roughly 35 per cent share. UPI, today, processes over 85 per cent of India’s digital payment volumes, making it the backbone of the country’s retail payments infrastructure.
The sustained dominance in UPI, despite rising competition from well-capitalised players, is seen as a key factor strengthening PhonePe’s public market pitch. Investors view the company as a relatively stable and scaled platform in an otherwise intensely-competitive fintech landscape.
In recent months, PhonePe has also seen heightened secondary market activity. General Atlantic last year invested $600 million in the company through a secondary share purchase, increasing its stake from 4.4 per cent to around 9 per cent. The transaction did not involve fresh capital infusion and was aimed at enabling employees to exercise stock options and meet related tax obligations. Including this deal, the US-based private equity firm has invested about $1.15 billion in PhonePe since 2023.
Tech listings
PhonePe’s IPO plans are unfolding against a broader revival in technology listings. Wealth-tech platform Groww listed late last year at an estimated valuation of $7.5 billion and is now trading at around $10.5 billion. Separately, merchant payments firm Pine Labs’ IPO closed for subscription in November, garnering nearly 2.5 times demand for its ₹3,900-crore issue.
Market participants believe these listings have helped reset investor confidence in new-age companies, potentially providing a favourable backdrop for PhonePe’s market debut.
Published on January 20, 2026
