PhonePe defers IPO plans amid geopolitical tensions and market volatility

PhonePe said it will resume the listing process once stability returns to global capital markets.

PhonePe, the Walmart-backed fintech major, has temporarily deferred its public market listing plans due to ongoing geopolitical tensions and heightened volatility in global markets.

The company said it will resume the listing process once stability returns to global capital markets.

"We sincerely hope for a swift return to peace in all the affected regions. We remain committed to a public listing in India," said Sameer Nigam, Chief Executive Officer of PhonePe.

The UPI payments platform had received approval from the Securities and Exchange Board of India for its IPO on January 20, 2026. Under the current approval, the company has a window to list anytime until January 2027.

For now, PhonePe intends to pursue the listing within this timeline, depending on market conditions.

The proposed offering was expected to value the company at around $15 billion, with the firm planning to raise nearly ₹12,000 crore, or about $1.35 billion, through a pure offer for sale.

The public listing of the Bengaluru-based payments platform could have become the second-largest new economy listing in India after the IPO of Paytm in 2021.

Earlier, brokerage firm Macquarie Group said in a note that PhonePe's proposed IPO could serve as a near-term valuation benchmark for Paytm and potentially trigger a re-rating of the stock.

Based on its last transaction with General Atlantic in September 2025, PhonePe's implied valuation is estimated at $13 billion to $15 billion. This is roughly 60% to 90% higher than the current market capitalisation of Paytm, even though PhonePe remains EBITDA-negative while Paytm has turned EBITDA-positive.

At this valuation, Macquarie Group estimates that PhonePe would trade at 37 to 43 times its adjusted first-half revenue, compared with roughly 19 times for Paytm.

PhonePe remains one of India's largest fintech platforms, commanding more than 45% share of UPI transactions.

As of September 2025, the company had over 657 million registered users and 47 million merchants. Its UPI market share by value stood at around 49% to 51%, ahead of competitors such as Google Pay and Paytm.