At a Glance
- PhonePe is opening a large share sale that could raise $15 billion.
- Tiger Global and Microsoft are selling their entire holdings.
- Walmart is keeping its majority stake while selling up to 45.9 million shares, about 9 % of the company.
Why it matters: The sale shows how global investors are monetizing their positions in India’s fintech boom through a public listing.
PhonePe, the Walmart-backed payments platform, has updated its IPO prospectus to reveal a massive liquidity event for its existing investors. The filing shows that Tiger Global and Microsoft will sell their full stakes, while Walmart chooses to retain control and offer up to 45.9 million shares. The move comes as PhonePe seeks to raise up to $1.5 billion to support its growth ambitions.
IPO Update Details
The prospectus, released on Wednesday, lists the exact number of shares available for sale. A total of 50.66 million shares are offered, providing a clear exit path for the two major shareholders. The sale is priced at a valuation that aligns with the company’s target market capitalization of around $15 billion, a step up from its $12 billion valuation in the January 2023 funding round.
The filing makes it clear that the sale is driven by existing investors, not by PhonePe’s management. No founder sell-downs are included, and the share price reflects the company’s recent performance and growth prospects.
Investor Movements
- Tiger Global – Exits with a full stake, signaling confidence in PhonePe’s long-term value.
- Microsoft – Completes its exit, having invested in the fintech during earlier funding rounds.
- Walmart – Retains majority control, selling up to 45.9 million shares (about 9 % of the company) to diversify its portfolio.
These moves illustrate a broader trend of global tech giants taking profits from high-growth Indian startups as they prepare for public listings.
Financial Performance
PhonePe’s financials in the six months ending September 2025 show strong revenue growth but widening losses:
| Metric | 2024 (Six months) | 2023 (Six months) |
|---|---|---|
| Revenue | ₹39.19 billion (≈ $427.79 million) | – |
| Loss | ₹14.44 billion (≈ $157.70 million) | ₹12.03 billion (≈ $131.34 million) |
The 22 % rise in revenue reflects expanding user activity across payments, stockbroking, and mutual funds. However, the loss has increased, underscoring the cost of scaling and customer acquisition.
Market Position
PhonePe dominates India’s UPI ecosystem, leading in transaction volume and outpacing competitors like Google Pay. According to the latest NPCI data for December 2025:
| Platform | Transactions | Value (₹) | Value (USD) |
|---|---|---|---|
| PhonePe | 9.81 billion | ₹13.6 trillion | $148.6 billion |
| Google Pay | 7.50 billion | ₹9.6 trillion | $104.5 billion |
The figures highlight PhonePe’s scale and the growing importance of digital payments in India’s financial landscape.
Timeline of Key Events
| Date | Event |
|---|---|
| January 2023 | PhonePe valued at $12 billion in a funding round |
| December 2020 | Flipkart announces partial split |
| December 2022 | PhonePe and Flipkart complete separation |
| September 2025 | Latest revenue and loss figures reported |
| December 2025 | Transaction volume data released |
| October 13-15, 2026 | PhonePe’s IPO filing updated |
Key Takeaways
- PhonePe’s IPO filing signals a significant liquidity event for Tiger Global and Microsoft.
- Walmart’s decision to retain majority control while selling 9 % reflects a strategic approach to the public market.
- The company’s robust transaction volumes and revenue growth underscore its leading position in India’s fintech sector.
- Investors can expect a sizable market entry that may reshape the competitive dynamics of digital payments in the region.
The updated prospectus also offers a rare glimpse into how international investors are navigating the Indian public markets. By providing a clear exit for two of its biggest shareholders, PhonePe is setting the stage for a broader participation from retail and institutional investors alike.
The timing of the filing coincides with a period of heightened interest in fintech IPOs across Asia, as regulators tighten guidelines and investors seek high-growth opportunities. PhonePe’s decision to keep Walmart as the majority shareholder may also signal confidence in the company’s long-term strategy, while the partial sale of shares allows the firm to raise capital without diluting its core ownership structure.
Overall, the move underscores PhonePe’s ambition to solidify its leadership in the UPI space and expand into adjacent financial services, leveraging its strong brand and extensive user base to capture additional market share.
About the Author
The author covers startups, tech policy-related updates, and all other major tech-centric developments from India for News Of Philadelphia. The author previously worked as a principal correspondent at NDTV.
