PhonePe Ready to Ring the IPO Bell: SEBI Approval Secured

PhonePe is gearing up for its Initial Public Offering (IPO) after receiving a nod from SEBI. The company will soon file updated draft papers. This move marks a benchmark for India's digital payment sector, offering a significant example for other fintech unicorns considering public market entry.

In a significant development for India's fintech landscape, PhonePe, the country's largest digital payments firm, has received approval from SEBI for its much-anticipated Initial Public Offering (IPO). Sources close to the company indicate that it will soon file updated draft papers in preparation for the listing.

The IPO, slated to be an Offer For Sale by existing shareholders, will not involve raising additional primary capital. This strategic move showcases confidence in PhonePe's robust financial health and growth trajectory. The company has enlisted the services of premier financial institutions like Kotak Mahindra Capital, JPMorgan Chase, Citigroup, and Morgan Stanley to facilitate this public offering.

With a valuation of USD 12 billion, following a substantial funding round last financial year, PhonePe leads India's digital payments market with over a 45% share in UPI transactions. The company recorded a 40% revenue increase in FY24-25 and achieved positive free cash flow. The IPO is expected to set a benchmark in the digital payments sector and inspire other fintech unicorns to explore public listings.

(With inputs from agencies.)