Indian fintech leader PhonePe, backed by US retail giant Walmart, is targeting a valuation of between $9 billion and $10.5 billion in its planned initial public offering in India, according to people familiar with the matter. The valuation range, disclosed as part of confidential investor conversations, would place the upcoming listing among the country’s biggest technology debuts but below the firm’s previous private market valuation of $12 billion.
The proposed IPO, which PhonePe filed confidentially in September, is expected to raise around $900 million to $1.05 billion based on the targeted valuation. Rather than issuing new shares, the offering will serve as an offer for sale, meaning existing shareholders will sell their stake to public investors. In total, Walmart plans to trim its holding by approximately 12 percent, while institutional backers Tiger Global Management and Microsoft intend to exit their positions entirely, selling roughly 50.7 million shares as part of the transaction.
Market watchers say the timing of the listing remains subject to broader capital market conditions, with PhonePe aiming to complete the process by April 2026. The final valuation will depend on investor appetite and prevailing market sentiment as the fintech sector adjusts to shifting economic conditions following a period of robust private funding.
If completed within its target range, the IPO would position PhonePe as India’s second‑largest fintech listing to date. The 2021 public market debut of Paytm remains the benchmark, having commanded a valuation near $20 billion at its peak.
Despite its scale and reach the platform processes billions of transactions through India’s Unified Payments Interface and counts more than 650 million registered users some investors remain cautious about PhonePe’s ability to monetise its user base. Payments businesses in India operate on razor‑thin margins, with regulatory curbs restricting charges on instant payments, posing challenges to revenue growth. PhonePe’s recent financial filings show revenue gains alongside widening operating losses, highlighting the trade‑off between rapid expansion and profitability.
Overall, the planned IPO reflects both the maturation of India’s fintech ecosystem and the recalibration of valuations after a period of intense private market enthusiasm.
For PhonePe’s backers, the listing represents an opportunity to crystallise returns while testing investor confidence in the long‑term profitability of digital payments and financial services ventures in one of the world’s fastest‑growing markets.
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