Quick Take
- PhonePe plans ₹12,000 crore ($1.35B) IPO by mid-2026, valued at $12B in 2023
- Revenue surged 40% to ₹7,115 crore while losses narrowed to ₹1,720 crore
- Commands 45% market share in India’s unified payments interface
- Walmart, Microsoft, Tiger Global may reduce stakes through public offering
- IPO timing aligns with India’s record-breaking $20B+ fundraising year
PhonePe Eyes Mid-2026 Public Debut Amid Market Surge
India’s leading digital payments platform prepares major IPO as tech valuations soar — Reuters
India’s top digital payments company PhonePe is gearing up for what could be one of the country’s biggest tech IPOs, targeting ₹12,000 crore ($1.35 billion) through a public listing set for mid-2026. The Walmart-backed fintech giant has filed confidentially for the offering, sources familiar with the matter told Reuters and Hindustan Times.
The timing shows PhonePe’s confidence in both its strong financial performance and India’s red-hot capital markets, which look set to surpass $20 billion in fundraising this year. Last valued at $12 billion in 2023, the company has become a key player in India’s digital transformation story.
Strong Numbers Back IPO Plans
PhonePe’s recent financial results showcase the operational strength driving its IPO strategy. The company pushed revenue up 40% to ₹7,115 crore while cutting losses from around ₹1,996 crore to ₹1,720 crore, showing better financial management alongside rapid expansion.
The payments platform handled 915 crore transactions in August alone, serving more than 60 crore users through India’s unified payments interface (UPI) network. This infrastructure has helped PhonePe grab over 45% market share in India’s digital payments space since its 2015 launch.
Major Investors May Cash Out
The IPO could let current investors including Walmart, Microsoft, and Tiger Global trim their holdings, though specific exit plans haven’t been revealed. These moves reflect how India’s tech investment scene is evolving as early backers look for exits amid strong market conditions.
PhonePe has kept quiet about detailed IPO terms, citing market sensitivities typical for companies preparing to go public, and declined to comment beyond what’s required in regulatory filings.
India’s Tech IPO Wave Builds
PhonePe’s market debut comes as India’s primary markets see unprecedented action. Tech and consumer companies are taking advantage of strong investor interest, with LG Electronics’ Indian division and PayPal-backed Pine Labs among other big names considering similar moves.
The IPO boom reflects growing faith in India’s economic fundamentals and digital adoption rates, especially in financial services where regulatory backing has sparked rapid innovation and growth.
Digital Payments Dominance
Since 2015, PhonePe has grown from a payments startup into India’s most-used digital financial platform. The company’s lead in UPI transactions makes it essential infrastructure for India’s cashless economy goals, processing billions of transactions monthly across merchant and person-to-person transfers.
This market position, along with better unit economics and rising user activity, gives PhonePe solid fundamentals as it prepares for public market oversight. The 2026 timeline provides room for more operational improvements while capitalizing on continued digital payments growth across India’s varied consumer base.
What It Means for Tech Investing
PhonePe’s IPO marks a major moment for India’s fintech development and could shape valuations across the broader tech sector. The company’s success in showing both scale and improving profit metrics may set standards for other digital economy firms eyeing public listings.
The offering’s performance will depend largely on sustained growth in digital payments use, regulatory stability, and PhonePe’s ability to expand beyond core payments into related financial services while keeping its market lead.
