The undisputed king of Indian digital payments is heading to the bourses.
PhonePe, the Walmart-backed fintech giant, has received regulatory approval for its IPO, targeting a listing by mid-2026. With a commanding ~48% market share of India’s UPI ecosystem, this listing is set to be the definitive test of investor appetite for large-scale consumer internet businesses in 2026.
📊 THE DEAL METRICS:
- Target Valuation: ~$15 billion (up from $12B in 2023).
- Deal Size: ~$1.5 billion (Approx. ₹12,000 Crore).
- Structure: 100% Offer for Sale (OFS).
- The Sellers: Walmart, Microsoft, and Tiger Global will offload partial stakes, marking a significant liquidity event for these global giants.
🚀 THE GROWTH ENGINE: PhonePe isn’t just a payments app; it’s a transaction machine.
- Scale: Processed 9.8 billion transactions in December 2025 alone (out of India’s 21.6B total).
- Financials (FY25): Revenue jumped 40% to ₹7,115 Cr, while net losses narrowed to ₹1,727 Cr.
- Regulatory Tailwind: India’s decision to delay the “30% Market Share Cap” on UPI apps has allowed PhonePe to consolidate its lead over Google Pay and Paytm without regulatory brakes.
💡 ANALYST TAKEAWAY: This is the “Paytm Redemption” arc the market has been waiting for. Unlike the 2021 tech IPO bubble, PhonePe is approaching the market with improving unit economics and indisputable market leadership. The key for institutional investors will be the valuation multiple: at $15B, the market is pricing in not just payments dominance, but successful execution in high-margin adjacencies like Insurance, Wealth Management, and Lending.
👇 Fintech Investors: Is a $15B valuation justified for a payments-first business, or does the margin expansion need to happen before the listing?