PhonePe IPO: Sebi Nod Fuels Hopes Of Biggest Fintech Listing Since Paytm

The Walmart-backed firm is likely to raise about Rs 12,000 crore through an offer for sale (OFS), with existing shareholders expected to dilute part of their holdings.

PhonePe’s listing is widely seen as a key test of investor appetite for large consumer internet companies following a period of volatility in the sector.

Source : PhonePe

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Digital payments major PhonePe has received approval from the Securities and Exchange Board of India (Sebi) to proceed with its initial public offering, clearing a key regulatory hurdle for one of India’s most anticipated fintech listings.

IPO Could Value Company At $15 Billion

The Bengaluru-based company is now expected to advance preparations for an IPO that could value it at around $15 billion, according to a report by Moneycontrol.

The Walmart-backed firm is likely to raise about Rs 12,000 crore through an offer for sale (OFS), with existing shareholders expected to dilute part of their holdings.

Among India’s Biggest Fintech Listings

If executed as planned, PhonePe’s listing would rank among the largest fintech IPOs in India, second only to Paytm’s public debut in 2021.

PhonePe has emerged as a dominant force in India’s digital payments ecosystem, processing billions of transactions each month and commanding a significant share of UPI volumes.

Beyond Payments: Expanding Financial Services Play

While digital payments remain its core business, PhonePe has expanded into adjacent segments including stockbroking, insurance distribution and lending, as it seeks to build a broader financial services platform.

Investor Participation And Market Timing

Major investors, including Walmart and other early backers, are expected to participate in the share sale. The company has been working with multiple investment banks to prepare for the offering and position itself for a public listing amid improving sentiment for technology stocks.

The regulatory clearance comes at a time when India’s primary markets are seeing renewed activity, with several technology and startup firms planning IPOs.

Key Test For Fintech And Internet Stocks

PhonePe’s listing is widely seen as a key test of investor appetite for large consumer internet companies following a period of volatility in the sector.

With Sebi’s approval now in place, PhonePe is expected to move ahead with the next steps towards launching the IPO, making it one of the most closely watched market debuts in India’s fintech space.

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