The company is likely to file an updated draft red herring prospectus (UDRHP) within the next few days, the sources added.

Inc42 has reached out to PhonePe for comments on the development. The story will be updated on receiving a response.

The development was first reported by Moneycontrol.

The Walmart-owned fintech giant filed its DRHP with SEBI through the confidential route in September 2025. Back then, reports claimed that the company was looking to raise about INR 12,000 Cr ($1.35 Bn) via a complete offer for sale (OFS).

The Bengaluru-based company has raised nearly $2.3 Bn since inception and counts Microsoft and Tiger Global among its backers.

The fintech company's IPO is expected to be one of the largest new-age tech public offerings of 2026. The company began preparing for its mega IPO last year. In April 2025, it converted into a public entity. It also initiated an ESOP buyback worth up to INR 700 Cr to INR 800 Cr before filing its DRHP.

The fintech giant is the leading UPI player in the country with an average market share of 45-46%. In FY25, PhonePe's operating revenue zoomed 40.5% to INR 7,114.8 Cr from INR 5,064.1 Cr in the previous year. Meanwhile, net loss declined 13.5% to INR 1,727.4 Cr from INR 1,996.1 Cr in FY24.

Over the past few years, PhonePe kept expanding its offerings to become a full-stack financial services platform. It currently offers loans, insurance, stockbroking, travel bookings, among others.

The development comes amid the ongoing new-age tech IPO boom in the country. While 18 such companies went public last year, the momentum is expected to continue in 2026 as well.

PhonePe has become the second new-age tech company, after fintech startup Kissht, to receive SEBI's nod for IPO in 2026. Besides, Amagi Media Labs, whose shares are expected to list on the exchanges tomorrow, will become the first new-age tech company to go public this year. Logistics giant Shadowfax's IPO also opened for bidding today.