PhonePe IPO: Investors Cash Out Big

PhonePe, the Walmart-backed Indian payments startup, has updated its IPO filing, signaling a major liquidity event for its investors. Tiger Global and Microsoft are set to fully divest their stakes in the company. Walmart, however, intends to maintain its majority share while selling up to 9% of the company.

PhonePe, founded in 2015, has grown into a dominant force in India's fintech landscape. Originally focused on digital payments, it has expanded into stockbroking, mutual funds, and even an app store. The company leads India's digital payments market in transaction volumes, significantly outpacing competitors like Google Pay.

In December 2025 alone, PhonePe processed approximately 9.81 billion transactions, valued at about ₹13.6 trillion. This performance highlights its leading position in the UPI ecosystem. The company was valued at roughly $12 billion in a January 2023 funding round and is now targeting a market capitalization of around $15 billion for its IPO, which could raise up to $1.5 billion.

Despite its market leadership, PhonePe's financial reports show widening losses. In the six months ending September 2025, revenue grew 22% to ₹39.19 billion, but the net loss increased to ₹14.44 billion. The IPO's share sale is driven by existing investors, not by PhonePe's management, offering a clear path for global investors to exit the venture boom through India's public markets.