India-based fintech firm PhonePe, supported by Walmart, aims to secure a valuation between $9 billion and $10.5 billion through its upcoming initial public offering (IPO), as reported by two sources with direct knowledge cited by Reuters.
The IPO is expected to generate proceeds of approximately $900 million to $1.05 billion. This marks a decrease from the $12 billion valuation at which PhonePe raised $100 million in private markets last year.
According to reports, the IPO will include solely secondary shares, with no new issues by PhonePe itself. Walmart plans to pare its stake by roughly 12%, while Tiger Global and Microsoft intend to exit their holdings. Collectively, these firms aim to sell around 50.7 million shares. PhonePe filed for the IPO in September 2025 and is targeting completion by April 2026, subject to market conditions.
Scale and Market Position
PhonePe stands out as one of India’s most popular payment platforms, boasting over 650 million registered users. In January 2026, the company processed nearly ten billion transactions out of the total 21.7 billion conducted on India’s Unified Payments Interface (UPI), according to regulatory data.
India launched UPI in 2016 and has prohibited fee collection for instant payment services, a policy meant to boost digital adoption but one that has kept margins low in the sector.
If successful at the anticipated valuation, PhonePe’s IPO would rank as India’s second-largest fintech listing after Paytm’s approximately $20 billion debut in 2021. Currently, Paytm trades with a market capitalisation of around $7.1 billion.
Investor Sentiment and Monetization Challenges
Prior to the IPO, portfolio managers who participated in pre-roadshows told Reuters that enthusiasm for India’s fintech sector has waned, largely due to concerns over PhonePe’s ability to monetize its substantial user base. One manager highlighted a slowdown in active user growth, which has shifted focus to upselling existing users—an area yet to prove its viability.
Furthermore, a banker involved in the matter indicated that investors view India’s fintech landscape as highly competitive, with minimal differentiation among competing platforms.
