PhonePe has received approval from the Securities and Exchange Board of India (SEBI) for its initial public offering, with the company set to file its Updated Draft Red Herring Prospectus (UDRHP) soon. This development positions PhonePe for what is expected to be one of India's most significant fintech IPOs.

IPO Structure and Details

The public offering will be structured as an Offer For Sale (OFS) by existing shareholders, with PhonePe not raising any additional primary capital through the IPO. This approach allows current investors to monetize their holdings while providing public market access to the fintech leader.

Market Leadership and Transaction Volume

PhonePe maintains a dominant position in India's digital payments landscape, commanding over 45% market share in Unified Payments Interface (UPI) transactions. The company's transaction processing capabilities were demonstrated in December 2025, when it handled 9.8 billion transactions according to National Payments Corporation of India (NPCI) data.

Strong Financial Performance

The company delivered robust financial results for FY25, showcasing significant growth across key metrics:

PhonePe achieved a significant milestone by turning free cash flow positive, with operating cash flow reaching ₹1,202.00 crore. The company's adjusted profit after tax (excluding ESOP costs) more than tripled to ₹630.00 crore, demonstrating improved operational efficiency and profitability.

Industry Impact and Benchmark Setting

PhonePe's public listing is expected to establish a crucial benchmark for India's digital payments sector and could potentially encourage other fintech unicorns to consider public market entries. The IPO represents a significant moment for the Indian fintech ecosystem, given PhonePe's market leadership and strong financial trajectory.

PhonePe Payment Gateway has introduced a new payment solution called 'PhonePe PG Bolt' designed to streamline Visa and Mastercard transactions through advanced device tokenization technology. The feature promises to transform the digital payment experience by enabling secure one-click transactions for both users and merchant partners.

Key Features and Functionality

The PG Bolt solution centers around device tokenization technology that provides a secure and efficient in-app checkout experience. Users can tokenize their Mastercard and Visa cards once on the PhonePe app, after which they can use their saved cards across any merchant integrated with PhonePe PG without needing to tokenize their card separately with every merchant.

Enhanced User Experience

The system replaces sensitive card details with secure tokens, removing the requirement for CVV entry during subsequent transactions carried out on the same device. This architecture significantly reduces the number of steps in the payment journey while maintaining the user within the merchant's app environment throughout the process, eliminating traditional redirects to external pages.

Merchant Benefits

By utilizing PhonePe's native SDK, merchants can achieve higher transaction success rates and significantly faster checkout speeds. The efficiency gains are driven by the elimination of manual card entry and the reduction of technical hand-offs between payment entities. Additionally, the solution provides merchants with a customizable interface that integrates directly into their existing app flow, helping maintain brand consistency while reducing transaction drop-offs.

Leadership Perspective

Yuvraj Singh Shekhawat, Chief Business Officer of Merchant Business at PhonePe, described the launch as a significant step in the company's journey to simplify digital payments for millions of Indians. He emphasized that the device tokenization technology enables users and merchants to move away from the traditional, cumbersome checkout process to a secure, one-click payment experience. The solution is designed to enhance user convenience while empowering merchant partners to maximize their growth through industry-best success rates and reduced drop-offs.