PhonePe Delays IPO Amid Global Market Volatility
PhonePe, India’s leading digital payments platform backed by Walmart, has decided to postpone its initial public offering (IPO) due to escalating geopolitical tensions and the resulting volatility in global financial markets. The Bengaluru-based company announced the suspension of its IPO plans on Monday, emphasizing its commitment to proceeding with the public offering once market conditions stabilize.
This decision comes shortly after PhonePe filed an updated Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in January 2026, aiming for a listing on Indian stock exchanges later this year. The company had initially targeted a valuation of approximately $15 billion, with plans to raise up to $1.5 billion through the IPO. However, recent market developments have prompted a reassessment of these plans.
Market Conditions and Decision to Postpone
The global financial landscape has been significantly impacted by rising tensions in the Middle East, leading to increased oil prices and heightened market volatility. India’s benchmark equity indices, the Nifty 50 and BSE Sensex, have each declined by about 9% over the past month. This downturn has affected investor sentiment, prompting many companies to reconsider their fundraising strategies.
In light of these conditions, PhonePe has opted to delay its IPO. A company spokesperson stated, We paused the process only because of the current market conditions, which are unrelated to PhonePe. The company refuted claims that the postponement was due to valuation concerns, emphasizing that the decision was solely based on external market factors.
Background and IPO Plans
Founded in 2015 by Sameer Nigam, Rahul Chari, and Burzin Engineer, PhonePe has grown to become India’s largest digital payments platform. The company was acquired by e-commerce giant Flipkart in 2016 and later demerged in 2022, with Walmart becoming its single-largest shareholder.
In its preparation for the IPO, PhonePe moved its domicile from Singapore to India and filed confidential draft papers with SEBI in September 2025. The proposed IPO was structured as a pure offer for sale (OFS), with existing shareholders, including Walmart, Tiger Global, and Microsoft, planning to offload a portion of their holdings. The offering aimed to raise approximately ₹12,000 crore (around $1.35 billion), valuing the company at about $15 billion.
According to the updated DRHP, Walmart intended to reduce its stake by approximately 12%, while Tiger Global and Microsoft planned to exit their positions entirely. The three firms collectively aimed to sell around 50.7 million shares. PhonePe’s IPO was anticipated to be one of India’s largest fintech listings, following the path of other major players in the industry.
Financial Performance and Market Position
PhonePe has demonstrated strong financial performance in recent years. According to its latest filings with the Ministry of Corporate Affairs, the company’s revenue from operations rose 41% year-on-year to ₹7,148.6 crore in FY25, up from ₹5,064.1 crore in FY24. At the same time, losses narrowed to ₹1,727.4 crore, compared to ₹1,996.2 crore in the previous year.
As of March 2024, PhonePe reported approximately 530 million registered users, around 200 million monthly active customers, and over 5 million net payment devices deployed. The platform processes over 7.7 billion transactions monthly, amounting to ₹10.5 lakh crore in total payment value. In February 2026, PhonePe processed about 9.3 billion transactions worth roughly ₹13.1 trillion (about $141.9 billion), compared with Google Pay’s 6.8 billion transactions worth around ₹9 trillion (around $97.8 billion), according to data from the National Payments Corporation of India (NPCI).
Regulatory Considerations and Risk Factors
In its updated DRHP, PhonePe highlighted several risk factors that could impact its business and financial performance. These include potential increases in payment processing charges, dependence on sponsor Payment Service Provider (PSP) banks under Unified Payments Interface (UPI) rules, and the impact of the National Payments Corporation of India’s (NPCI) UPI volume cap circular.
The company also noted its history of net losses and the potential impact of cyberattacks and data breaches. Additionally, PhonePe acknowledged the risks associated with international expansion and past corporate filing discrepancies.
Future Outlook
Despite the current postponement, PhonePe remains committed to its IPO plans and will continue to monitor market conditions to determine the appropriate timing for the public offering. The company aims to leverage its strong market position and financial performance to achieve a successful listing once the external environment becomes more favorable.
In the meantime, PhonePe plans to focus on expanding its user base, enhancing its product offerings, and exploring new growth opportunities both domestically and internationally. The company has already extended UPI services to several countries through NPCI International Payments Limited, including Singapore, the United Arab Emirates, Nepal, Sri Lanka, Bhutan, and Mauritius.
As the global financial landscape continues to evolve, PhonePe will adapt its strategies to navigate the challenges and opportunities that arise, ensuring its readiness for a successful IPO in the future.
