Walmart-backed payments giant PhonePe is finally setting the stage for its much-anticipated public market debut. According to highly placed sources, the company has started work on its initial public offering (IPO) and may opt for the confidential filing route. If things go as planned, PhonePe will file for the IPO by the end of September 2025, with a target to list by early 2026.
This move marks a defining moment not just for the company but also for India’s thriving digital payments ecosystem, where PhonePe has been leading the charge with over 45% market share in UPI transactions.
IPO Size and Valuation: What to Expect
The upcoming IPO is expected to be sized at around ₹10,000–13,000 crore ($1.2 – 1.5 billion). Sources suggest that the company will likely offer about 10% equity for sale, while also raising fresh capital during the process.
With this, PhonePe is eyeing a valuation of $10–12 billion at the time of listing. For Walmart, which acquired majority ownership in PhonePe after buying Flipkart in 2018, this IPO will provide a milestone moment in realizing the value of its fintech bet.
Walmart to Hold, Smaller Investors May Exit
Despite the IPO creating a liquidity event, Walmart—the promoter of PhonePe with over 70% stake—is unlikely to offload much of its holding. Instead, smaller investors like Tiger Global and General Atlantic, who each own less than 9% in the company, may use the opportunity for a partial exit.
This signals Walmart’s long-term confidence in the Indian digital payments and fintech space, an area it has consistently backed through its investment in PhonePe.
Market Leadership in UPI and Beyond
PhonePe isn’t just another payments app—it is the market leader in QR-based UPI transactions, handling nearly half of India’s digital payment volumes. Its dominance in the payments sector is a strong value driver for investors.
But PhonePe’s ambitions stretch far beyond peer-to-peer payments. The company also operates in the payment gateway segment and has aggressively expanded into financial services, offering products like insurance, mutual funds, and personal loans. This diversification not only boosts its revenue streams but also strengthens its case as a fintech super-app in the making.
Investment Banking Heavyweights Onboard
PhonePe’s IPO will be managed by some of the biggest names in the financial world. JP Morgan, Morgan Stanley, Citigroup, and Kotak Mahindra Capital have been appointed as investment bankers to steer the issue. Their involvement underscores the scale and global attention this IPO is expected to command.
For the Indian capital markets, the PhonePe listing could become one of the most closely watched events in recent years, following the footsteps of other high-profile tech IPOs.
From Flipkart Offshoot to Walmart Subsidiary
Founded in December 2015, PhonePe began life as a subsidiary of Flipkart. Its fortunes changed dramatically when Walmart acquired Flipkart in 2018. Recognizing the fintech unit’s potential, Walmart later reorganized PhonePe as a separate subsidiary in December 2020, spinning it off from Flipkart to sharpen focus on its independent growth trajectory.
Today, PhonePe is one of Walmart’s crown jewels in India, and the IPO will serve as a crucial benchmark for the retail giant’s broader India strategy.
What Lies Ahead
With India witnessing a fintech boom, PhonePe’s IPO is set against a favorable backdrop. UPI transactions have surged exponentially, with digital adoption now touching even small towns and villages. By going public, PhonePe is not only unlocking shareholder value but also positioning itself for greater transparency, capital access, and long-term scalability.
If successful, the IPO could become a bellwether for India’s fintech sector, showcasing the maturity and global investor appetite for homegrown digital financial platforms.
As the clock ticks toward early 2026, all eyes will remain on PhonePe—can it pull off one of India’s most anticipated tech listings and cement its legacy as the country’s payments powerhouse?
