PhonePe, India’s leading digital payments and financial services platform backed by Walmart, is gearing up for a highly anticipated initial public offering (IPO), with sources indicating it is targeting a valuation of $9 billion to $10.5 billion (roughly ₹83,050 crore to ₹96,890 crore). The deal could raise approximately $900 million to $1.05 billion through a pure Offer for Sale (OFS) of existing shares, according to regulatory filings and multiple reports.
Key Highlights
- PhonePe plans IPO targeting up to $10.5 billion valuation amid volatile markets.
- Walmart, Tiger Global and Microsoft to trim stakes via offer for sale.
Valuation Target and Shareholder Exits
PhonePe’s IPO — initially filed with the Securities and Exchange Board of India (SEBI) in September 2025 — is expected to see major shareholders trimming their stakes. Walmart plans to reduce its holding by about 12 %, while global investors Tiger Global and Microsoft intend to fully exit their positions by selling a combined 50.7 million shares in the offering.
Despite the high valuation in absolute terms, the expected listing range represents a discount from the approximately $12 billion valuation the company achieved in its last private funding round in 2023. Analysts say this reflects cautious investor sentiment amid shifting market conditions, including global geopolitical tensions and tightening liquidity in tech IPO markets.
Financial Performance & Market Position
PhonePe’s latest IPO draft includes preliminary financials showing revenue growth of around 22 % to approximately ₹39.18 billion in the year ending September 2025, though losses widened to ₹14.44 billion (about $158 million) over the same period. The firm reported processing nearly 10 billion of India’s 21.7 billion Unified Payments Interface (UPI) transactions in January 2026, reinforcing its dominant position in the country’s digital payments ecosystem.
However, industry observers caution that the payments space remains low-margin, particularly for UPI transactions where fees are regulated and largely fee-free, making monetisation the key challenge for PhonePe and its peers. One portfolio manager involved in pre-IPO roadshows told, “Monetisation remains a question mark. Active users aren’t growing at the same pace, so the game is all about upsell, and that remains to be seen.”
Also Read: PhonePe Cofounders Sell $430 Mn Stake Ahead of IPO Plans
IPO Timing and Market Context
PhonePe had initially aimed to complete its IPO in April 2026, though sources noted the timeline could shift depending on overall capital market conditions. Broader geopolitical uncertainties — including ongoing tensions in the Middle East — have sparked volatility across global markets, potentially impacting investor appetite for large fintech offerings.
If successful, PhonePe’s listing would be India’s second-largest fintech IPO, trailing only the marquee debut of Paytm, which listed at a valuation of about $20 billion in 2021. At present, Paytm’s market capitalisation has since corrected to around $7.1 billion.
