PhonePe hits pause on IPO as US-Iran war shakes markets; CEO says ‘We hope for a swift return to peace’

UPI payments giant PhonePe Ltd has postponed its planned initial public offering (IPO) in India, citing the impact of the ongoing US-Iran war and rising volatility in global financial markets.

The Walmart-controlled fintech company said it will restart the listing process once stability returns to 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, CEO of PhonePe.

The company had been targeting a valuation of about $9 billion to $10.5 billion for the public issue. That would have been lower than the $12 billion valuation at which PhonePe raised $100 million in 2023.

According to its draft red herring prospectus (DRHP) filed with SEBI, the proposed IPO was structured entirely as an offer for sale of 50,660,446 equity shares, with no fresh shares being issued. Walmart was expected to sell around a 9% stake, alongside investors including Tiger Global and Microsoft, offering them a partial exit.

Founded in 2016, PhonePe operates digital platforms across payments, financial services and digital distribution. As of September 30, 2025, the company had more than 65 crore registered users and a merchant network spanning over 4.7 crore businesses.

PhonePe remains the largest player in India’s UPI ecosystem with more than 48% market share by transaction value. Data from the National Payments Corporation of India shows the platform processed about 9.8 billion transactions in December alone.

The delay comes at a time when India’s once buoyant IPO market is showing signs of cooling. According to Bloomberg data, companies have raised around $1.5 billion through primary offerings so far this quarter, compared with $2.3 billion during the same period last year.

Market sentiment has also been weighed down by concerns over geopolitical tensions, potential economic slowdown, persistent foreign capital outflows and a weakening Indian rupee.