PhonePe defers IPO plans amid West Asia crisis, market volatility

PhonePe has temporarily deferred its IPO plans citing the West Asia conflict and volatile markets, though the company says it remains committed to pursuing a public listing in India

Digital payments and financial services major PhonePe said it has temporarily deferred its public listing due to the ongoing conflict in West Asia and heightened market volatility, pushing back its initial public offering (IPO) plans that were earlier expected to be on track by the middle of the current year.

 

The company said it would resume its listing process once there was stability in the global markets. 

 

“We sincerely hope for a swift return to peace in all the affected regions. We remain committed to a public listing in India,” said Sameer Nigam, chief executive officer (CEO), PhonePe. 

 

 

The company is reportedly seeking to raise about $1.5 billion, for a valuation of around $15 billion. 

 

The Bengaluru-based company is among the first in India to defer its initial public offering (IPO) as concerns grow over a potential market rout stemming from the conflict in West Asia. The company is also navigating challenges around pricing the issue at its desired valuation ahead of the planned public listing.

 

The deferment comes at a time when India’s market capitalisation has declined by about $447 billion to $4.7 trillion since the war in West Asia began. 

 

Concerns over stretched valuations in Indian public markets, after two years of a strong rally, have been amplified by the recent sell-off.

 

PhonePe’s proposed IPO includes an offer for sale (OFS) of 50.6 million equity shares. Existing investors, including promoter WM Digital Commerce Holdings (owned by Walmart International Holdings Inc), plan to offload 45.94 million shares. Tiger Global and Microsoft will sell 1.039 million and 3.678 million shares, respectively.

 

The company is the largest player in the Unified Payments Interface (UPI) ecosystem. 

 

The Bengaluru-based firm reported a consolidated loss of ₹1,444.42 crore in the first half of 2025-26 (H1FY26). In comparison, the fintech major’s loss was recorded at ₹1,203.2 crore in H1FY25. 

 

While the company has been in the red, its losses have come down from ₹2,796 crore in FY23 to ₹1,727.4 crore in FY25. In H1FY26, the company earned ₹3,918.4 crore in revenue from operations as compared to ₹3,207.5 crore in H1FY25.