PhonePe Puts IPO on Hold Citing Market Volatility

Digital payments platform PhonePe has temporarily paused its plans for an initial public offering (IPO), citing ongoing geopolitical tensions and volatility in global financial markets. In a statement issued on Monday, the company said it has deferred its listing and will revisit the IPO once conditions in global capital markets stabilise.

The decision comes at a time of heightened tensions involving Iran, United States and Israel, which have contributed to uncertainty in global markets. The situation has affected investor sentiment, leading several companies planning public listings to delay their IPOs.

PhonePe Chief Executive Officer Sameer Nigam said the company remains committed to going public in India despite the temporary pause. He added that the firm hopes for an early resolution to the ongoing geopolitical conflict.

Founded in 2016, PhonePe has grown into one of India’s largest digital payments platforms with more than 650 million registered users and a merchant network exceeding 47 million. In February, it recorded 9.28 billion transactions on the Unified Payments Interface (UPI), accounting for a significant share of both transaction volume and value.

Earlier in January, the company had filed an updated draft red herring prospectus with the Securities and Exchange Board of India to raise around INR 12,000 crore through an IPO. Reports had suggested a target valuation of about USD 10.5 billion, while a previous investment by General Atlantic valued the firm higher.

Market volatility is seen as a key factor behind the delay, as uncertain conditions could impact valuation expectations. The timing of the IPO remains important for the company and its major shareholder Walmart.