PhonePe delays India IPO as geopolitical tensions rattle global markets

Walmart-backed digital payments company PhonePe has deferred its planned public offering as geopolitical tensions and falling equity markets weigh on investor sentiment.

The Bengaluru-based firm confirmed on Monday that it has temporarily halted preparations for its stock market debut and will restart the process once global capital markets stabilise.

The move follows rising volatility in financial markets linked to escalating conflict in the Middle East.

PhonePe had been preparing for an initial share sale that could have raised up to $1.5 billion.

PhonePe pauses IPO amid market volatility

PhonePe said it chose to delay the offering as global financial markets have become increasingly unstable.

The company said it remains committed to a public listing in India and will move ahead once market conditions improve.

The fintech firm had secured approval from the Securities and Exchange Board of India earlier this year for the public issue.

Earlier reports said the proposed offering could raise around $1.3 billion through an offer for sale and value the company at roughly $10 billion.

India’s Nifty 50 Index has fallen more than 7% so far this month, putting it on track for its worst monthly performance since March 2020.

The decline has been linked to rising geopolitical tensions involving Iran, Israel and the United States.

Walmart stake and IPO structure

PhonePe is backed by US retail giant Walmart, which owns about 71.77% of the company.

Under the proposed listing plan, Walmart was expected to sell up to 45.9 million shares, representing roughly 9% of PhonePe’s share capital.

The IPO had drawn attention because it would have been among the largest fintech listings in India in recent years.

However, recent market turbulence has prompted companies to reassess fundraising timelines.

Dominance in India’s UPI payments network

PhonePe remains the largest participant in India’s Unified Payments Interface ecosystem.

The platform handles nearly half of all transactions on the network.

The company holds around 45% share of UPI transactions, ahead of rival Google Pay, which has roughly 35%.

UPI has become the backbone of India’s digital payments landscape and now accounts for more than 85 percent of the country’s digital transactions.

PhonePe alone processes close to 10 billion transactions every month with a combined value exceeding about $145 billion.

Revenue growth and expanding financial services

The company has been expanding its financial services offerings beyond payments.

Its products include stockbroking through Share.Market, along with lending, insurance distribution and wealth management tools.

PhonePe reported revenue from operations of about $857 million in FY25, compared with about 610 million dollars in FY24.

The firm also recorded gains of about $62 million from financial assets, taking total income to about $919 million in FY25 from about $689 million a year earlier.

Payment processing charges remained a major cost item at about $203 million during the year. Advertising and sales promotion expenses fell 21.6% to about $65 million.

PhonePe reported a net loss of about $208 million in FY25, narrowing from about $240 million in FY24.

Excluding ESOP costs, the company would have reported a profit of about $76 million.