PhonePe Set for Historic IPO in Indian Fintech

PhonePe is preparing for an IPO following SEBI approval, with plans to file an Updated Draft Red Herring Prospectus. This IPO will be an Offer For Sale by existing shareholders and could become a key milestone for India’s digital payments industry, potentially influencing other fintech companies.

PhonePe has secured approval from the Securities and Exchange Board of India (SEBI) for its Initial Public Offering (IPO) and is gearing up to file its Updated Draft Red Herring Prospectus (UDRHP) soon. According to sources familiar with the matter, this listing is poised to become India's most eagerly awaited fintech IPO in the coming months.

The IPO will be structured as an Offer For Sale by the current shareholders, with no new primary capital to be raised by the company. PhonePe holds a dominant position in India's digital payments landscape, commanding over 45 percent of the market share in Unified Payments Interface (UPI) transactions. In December 2025 alone, the firm executed a staggering 9.8 billion transactions, as reported by the National Payments Corporation of India (NPCI).

For the fiscal year 2024-2025, PhonePe reported revenues of Rs 7,115 crore, reflecting a 40 percent increase from the prior year. Additionally, it turned free cash flow positive with an operating cash flow of Rs 1,202 crore, while its adjusted Profit After Tax (excluding Employee Stock Ownership Plan costs) more than tripled to Rs 630 crore. The planned public listing could serve as a vital benchmark for India's digital payments sector, inspiring other fintech unicorns to explore public markets.

(With inputs from agencies.)