PhonePe IPO: Walmart-Backed Firm Secures SEBI Nod, To File Updated DRHP

Walmart-backed PhonePe has received regulatory approval from the Securities and Exchange Board of India (SEBI) for its upcoming Initial Public Offering (IPO), as per PTI report.  

The financial technology firm will now proceed to file its updated Draft Red Herring Prospectus (DRHP), paving way for a public listing focused on secondary share sales. 

SEBI Approval Signals Step Closer to IPO 

PhonePe’s SEBI clearance marks a significant milestone in its IPO journey. The company is preparing to file its updated DRHP, which will provide detailed disclosures required for its public offering.  

The IPO will be structured as an Offer For Sale (OFS) by existing shareholders, which means the company will not raise fresh primary capital under this issuance. 

Market Leadership and Financial Performance 

PhonePe continues to maintain a strong lead in India’s digital payments market, holding a 45% market share in UPI transactions. In December 2025 alone, the company processed 9.8 billion transactions, based on data from the National Payments Corporation of India (NPCI). 

For the financial year 2024–25, PhonePe posted revenue of ₹7,115 crore, representing a 40% year-on-year growth. Notably, it became free cash flow positive, with operating cash flow totalling ₹1,202 crore.  

Its adjusted Profit After Tax (PAT), excluding Employee Stock Ownership Plan (ESOP) costs, rose to ₹630 crore, more than tripling over the previous year. 

Read More: PhonePe and Google Pay Lead UPI Ecosystem in December 2025! 

IPO Structure and Shareholder Exit 

As per report, the IPO will consist purely of a secondary sale, with no fresh capital infusion. This means existing shareholders, possibly including early investors, employees, or strategic partners, will be divesting part of their holdings in the company.  

Conclusion 

PhonePe’s IPO process has advanced with SEBI’s approval, and the company is set to file its updated DRHP. With strong financials and market dominance in UPI payments, the public issue will allow current shareholders to offload part of their equity holdings. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.