India’s PhonePe secures regulatory nod for IPO- report

Core Viewpoint - PhonePe, an Indian digital payments company, has received regulatory approval for its initial public offering (IPO), aiming to raise approximately Rs120 billion ($1.35 billion) and complete the listing by mid-2026 [1][2]. Group 1: IPO Details - The IPO approval follows a confidential filing of draft documents with the Securities and Exchange Board of India (SEBI) in September of the previous year [1]. - The planned listing may involve a stake sale by existing shareholders, including Walmart, Microsoft, and Tiger Global [1][2]. - PhonePe is targeting a fundraising of about Rs120 billion ($1.35 billion) through the share sale [2]. Group 2: Company Performance and Market Position - PhonePe was valued at around $12 billion in private funding rounds in 2023 [2]. - The company operates one of India's largest digital payments platforms and holds a leading position on the Unified Payments Interface (UPI), accounting for over 45% of UPI transaction volumes as of December 2025 [3]. - In August 2025, PhonePe processed 9.8 billion out of 21.6 billion UPI transactions, according to data from the National Payments Corporation of India (NPCI) [4]. - PhonePe has over 600 million registered users and provides payment acceptance solutions to nearly 50 million merchants across India [4]. Group 3: Financial Performance - Ahead of the IPO, PhonePe reported a reduction in annual losses, with a net loss of Rs17.2 billion ($189 million) for the financial year ending in March 2025, down from Rs19.96 billion in the previous year [5]. - The company received final authorization from the Reserve Bank of India to operate as an online payment aggregator, allowing it to provide payment aggregation services to merchants under the central bank's regulatory framework [5].