SEBI Nod Brings PhonePe Closer to India’s Biggest Fintech IPO

PhonePe, the Walmart-backed Indian fintech and digital payments company, has received approval from the Securities and Exchange Board of India (SEBI) to move ahead with its initial public offering (IPO). This approval, granted on January 20, 2026, marks a critical regulatory milestone, allowing PhonePe to take the next steps toward listing on Indian stock exchanges. The company had earlier submitted its Draft Red Herring Prospectus (DRHP) confidentially in September 2025 and is now expected to file an updated DRHP in the coming days, a required step before officially launching the IPO.

The upcoming IPO is expected to follow a pure Offer for Sale (OFS) model. This means that existing shareholders, rather than the company itself, will sell shares to the public. No fresh capital is likely to be raised by PhonePe under this structure. Market analysts estimate that the OFS could raise around ₹12,000 crore, making it one of India’s largest fintech listings. With this offering, PhonePe could achieve a valuation of approximately $15 billion, putting it in the league of India’s most valuable fintech firms.

Major shareholders participating in the OFS include global giants like Walmart, Microsoft, and Tiger Global. These investors will sell a portion of their stakes, providing an exit opportunity after years of private investment. This step not only unlocks liquidity for early backers but also signals confidence in PhonePe’s long-term business prospects. The company’s leadership in digital payments, expansion into broad financial services, and position in India’s fintech ecosystem make this IPO one of the most anticipated market events of 2026.

The timing of the listing is likely to be in early to mid-2026, with March or April being potential target months. However, the final schedule will depend on market conditions, investor sentiment, and the completion of formalities following the updated DRHP filing. The SEBI approval clears a major hurdle and brings PhonePe closer to joining India’s public markets, offering retail and institutional investors a chance to participate in the country’s growing fintech space.

This IPO is significant not just for PhonePe, but also for India’s fintech sector as a whole. It follows in the footsteps of other large fintech listings like Paytm and reflects growing investor appetite for digital payment firms with large user bases and diversified services. For PhonePe, the OFS model helps maintain operational flexibility while providing existing investors a structured exit route. It also highlights the strategic confidence of global stakeholders in India’s expanding digital economy.

In summary, PhonePe has achieved a key milestone with SEBI’s IPO approval. The company is expected to raise around ₹12,000 crore through an Offer for Sale, with existing investors including Walmart and Microsoft partially selling their holdings. The IPO may value the firm at $15 billion, with a likely market debut in early to mid-2026. This move strengthens PhonePe’s visibility in India’s fintech market and provides investors a chance to participate in one of the country’s largest fintech public offerings.