PhonePe, backed by Walmart, shelves its IPO plans as Middle East conflicts drive market declines, impacting India's equity indexes.
PhonePe, India's largest digital payments platform, announced on Monday that it has paused its initial public offering (IPO) plans. The decision stems from heightened geopolitical tensions, particularly in the Middle East, which have caused global stock markets to fluctuate wildly.
These tensions have led to a sharp decline in India's benchmark indexes, with the Nifty 50 and BSE Sensex each dropping about 9% over the past month. The instability began around February 28, prompting investors to pull back amid rising oil prices.
Background on PhonePe's Growth
Founded in 2015 by Sameer Nigam, Rahul Chari, and Burzin Engineer, PhonePe started as a digital payments service and was acquired by Flipkart in 2016. It became a standalone entity in 2022, with Walmart as its majority shareholder.
The company dominates India's Unified Payments Interface (UPI) ecosystem, processing about 9.3 billion transactions worth roughly ₹13.1 trillion in February 2026, outpacing competitors like Google Pay.
PhonePe has expanded beyond payments into financial services, including stockbroking, mutual funds, and an alternative Android app store. In the six months ended September 2025, its revenue grew 22% to ₹39.19 billion, though losses widened to ₹14.44 billion due to expansion efforts.
IPO Details and Market Impact
PhonePe, valued at around $12 billion in January 2023, aimed for a $15 billion market cap in its IPO, potentially raising up to $1.5 billion. Recent advice from investment bankers suggested adjusting expectations to $9 billion, but the company denied that valuation concerns influenced the delay.
The IPO was set to allow early investors like Tiger Global, Microsoft, and Walmart to sell stakes, with Walmart planning to offload up to 9% of its shares. PhonePe stated it remains committed to going public once market conditions stabilize.
This pause reflects broader challenges in the fintech sector, where global events can disrupt funding and listings, as seen with other startups navigating volatile markets.
