PhonePe has updated its IPO filing, revealing a liquidity event that will see two major global investors sell their full stakes while the dominant shareholder retains a majority position.
At a Glance
- Tiger Global and Microsoft are offloading their entire holdings in PhonePe.
- Walmart keeps a majority stake, selling up to 45.9 million shares, roughly 9% of the company.
- The IPO could raise up to $1.5 billion as the company targets a market cap of $15 billion.
Why it matters: The move marks one of the largest exits by foreign investors in India’s fintech sector, signaling confidence in the market’s maturity.
IPO Update and Share Sale
On Wednesday, the startup updated its prospectus to disclose the exact number of shares available for sale. The filing shows a total of 50.66 million shares up for purchase, including the full stakes of Tiger Global and Microsoft.
Walmart, the majority shareholder, has opted to sell up to 45.9 million shares, which represents about 9% of the company. The sale is driven by existing investors; no founder sell-downs are included.
The prospectus indicates that the share sale will not be backed by PhonePe’s management, underscoring the independence of the liquidity event.
Investor Exit Strategy
Tiger Global and Microsoft, both significant players in the global venture ecosystem, are taking this opportunity to realize returns on their earlier investments. The decision aligns with a broader trend of international investors exiting Indian startups via public markets.
- Tiger Global: Full stake sale.
- Microsoft: Full stake sale.
- Walmart: Retains majority, sells 9% stake.
The IPO aims to raise up to $1.5 billion, positioning the company for further expansion.
Financial Performance
In the six months ending September 2025, PhonePe’s operations generated revenue that rose 22% to ₹39.19 billion, approximately $427.79 million. However, the company’s loss widened to ₹14.44 billion, about $157.70 million, up from ₹12.03 billion ($131.34 million) a year earlier.
| Metric | 2024 (Jan-Jun) | 2025 (Jul-Sep) |
|---|---|---|
| Revenue | ₹30.9 billion | ₹39.19 billion |
| Loss | ₹12.03 billion | ₹14.44 billion |
The growth in revenue reflects increased transaction volumes, while the higher loss indicates continued investment in scaling.
Market Position and Competition
PhonePe remains the largest player in India’s digital payments market, leading the UPI ecosystem in transaction volumes. In December 2025, it processed about 9.81 billion transactions worth roughly ₹13.6 trillion, equivalent to $148.6 billion.
Google Pay processed 7.5 billion transactions worth about ₹9.6 trillion, or $104.5 billion, according to NPCI data.
The company also offers a range of services beyond payments, including stockbroking, mutual funds, and an Android app store that competes with Google Play.
Historical Context
Founded in 2015 by Sameer Nigam, Rahul Chari, and Burzin Engineer, PhonePe was acquired by e-commerce giant Flipkart a year later. After Flipkart’s partial split in December 2020, PhonePe was spun off, completing its separation in December 2022. Walmart became the dominant shareholder during this transition.
The IPO filing marks the culmination of a series of strategic moves that positioned PhonePe as a key fintech player in India.
Key Takeaways
- Tiger Global and Microsoft are exiting with full stakes, while Walmart retains majority control.
- The IPO could raise up to $1.5 billion, targeting a market cap of $15 billion.
- PhonePe’s revenue grew 22% in the first half of 2025, but losses widened.
- The company leads in UPI transaction volumes, surpassing Google Pay.
- The liquidity event reflects confidence in India’s fintech market and the maturity of its public markets.
Sources familiar with the matter told News Of Philadelphia that the sale is driven by existing investors and that no founder sell-downs are part of the offer.
