PhonePe Gears Up for Mega IPO, Eyes $15 Bn Valuation as Walmart Trims Stake

PhonePe is moving closer to a high-profile stock market debut, with plans for an initial public offering that could value the digital payments major at nearly $15 billion. If completed as proposed, the listing would rank as India’s largest IPO since October, signalling growing investor confidence in large-scale consumer internet and fintech platforms.

According to its updated draft red herring prospectus filed with the market regulator, the Bengaluru-headquartered company will launch a pure offer-for-sale (OFS) of 5.07 crore equity shares, with no fresh capital being raised. Existing shareholders are expected to collectively offload shares worth up to $1.5 billion.

Parent company Walmart, which currently owns 71.77 percent of PhonePe through WM Digital Commerce Holdings, will pare its stake by selling up to 4.59 crore shares, equivalent to around 9 percent of PhonePe’s equity. Despite the dilution, Walmart will continue to remain the largest shareholder post-listing.

The IPO will also provide an exit route for early investors. Tiger Global plans to sell 10.39 lakh shares, while Microsoft Global Finance will exit fully by offloading its entire holding of 36.78 lakh shares. Based on the weighted average acquisition price, the total value of shares on offer is estimated at Rs 10,115.87 crore. PhonePe is targeting a market debut by mid-2026.

Operating in an intensely competitive digital payments market alongside players such as Google Pay and Paytm, PhonePe continues to dominate India’s UPI ecosystem. As of September 30, 2025, the platform had 65.76 crore registered users and serviced over 4.7 crore merchants nationwide. In December 2025 alone, PhonePe processed 9.8 billion UPI transactions, accounting for more than 45 percent market share, according to NPCI data.

From a financial standpoint, the company reported a loss of Rs 1,444 crore on revenues of Rs 3,919 crore for the six months ended September 30, 2025. However, its annual performance reflects improving fundamentals. For FY25, PhonePe posted revenues of Rs 7,115 crore, a 40 percent year-on-year increase, and turned free cash flow positive, generating Rs 1,202 crore in operating cash flow. Its adjusted profit after tax, excluding ESOP expenses, surged to Rs 630 crore, more than tripling from the previous year.

PhonePe was last valued at $12 billion during its Rs 7,021 crore ($850 million) fundraise in FY23, which saw participation from General Atlantic, Ribbit Capital, TVS Capital Funds, Walmart, and Tiger Global. Founded in 2016, the company has raised close to Rs 18,000 crore to date.

The IPO will be led by a consortium of investment banks including Kotak Mahindra Capital, Goldman Sachs, Axis Bank, JPMorgan Chase, Citi, JM Financial Services, Morgan Stanley, and Jefferies. Market participants are expected to closely track the listing, as it could set a benchmark for fintech valuations and influence other digital-first companies considering a public market entry.