Walmart-backed digital payments major PhonePe has officially received regulatory approval from the Securities and Exchange Board of India (SEBI) for its highly anticipated Initial Public Offering (IPO). This clearance, confirmed on January 20, 2026, marks a significant milestone for one of India's leading fintech players. The Bengaluru-based company is reportedly targeting a substantial valuation of approximately $15 billion for its public debut. Following SEBI's nod, PhonePe is expected to file its Updated Draft Red Herring Prospectus (UDRHP) shortly, formally advancing the listing process. The proposed IPO will be structured primarily as an Offer For Sale (OFS) by existing shareholders, rather than a fresh issue of shares. Through this OFS, PhonePe aims to raise around ₹12,000 crore (approximately $1.35 billion). Major investors such as Walmart, Tiger Global, and Microsoft are among the existing shareholders expected to divest a portion of their holdings. PhonePe holds a commanding position in India's digital payments ecosystem, boasting over 45% market share in Unified Payments Interface (UPI) transactions. In December 2025 alone, the platform processed an impressive 9.8 billion transactions. Beyond its core payments business, PhonePe has diversified into various financial services, including stockbroking, insurance distribution, and lending. The company reported a revenue of ₹7,115 crore in FY24-25, a 40% year-on-year increase, and turned free cash flow positive with an operating cash flow of ₹1,202 crore. This IPO is widely seen as a crucial benchmark for India's digital payments sector and is anticipated to be one of the country's most closely watched fintech listings, often positioned in significance after Paytm's public debut in 2021.