Flipkart-backed PhonePe snubs IPO plans amid geopolitical tensions, market volatility

Flipkart-backed PhonePe has temporarily postponed its public market listing, citing current geopolitical uncertainties and heightened market volatility, reported ANI. The company has announced that its IPO process will resume once global capital markets stabilise, reflecting a cautious approach amid unpredictable external conditions.

"We sincerely hope for a swift return to peace in all the affected regions. We remain committed to a public listing in India," said said Sameer Nigam, Chief Executive Officer of PhonePe to the news agency. This underscores the company's ongoing intent to bring its shares to Indian capital markets when the environment is more favourable.

This move aligns with the broader trend of companies reassessing their public listing strategies in response to external shocks, as global events continue to impact investor sentiment and capital flows. Nigam's remarks highlight PhonePe's commitment to transparency and its desire to contribute to India's financial ecosystem through a future public offering.

Founded in 2016, PhonePe is a technology company specialising in building digital platforms for payments, digital distribution, and financial services. Bengaluru-based PhonePe has grown to become a significant player in the digital payments sector. It has consistently expanded its portfolio, leveraging technology to enhance user experience and drive financial inclusion.

The decision to defer the IPO comes at a time when global markets are experiencing heightened uncertainty, with companies and investors closely monitoring the impact of geopolitical conflicts. PhonePe has stated that it will resume the IPO process after assessing improvements in global capital market conditions.

The company’s product suite includes consumer payments, merchant payments, digital distribution services, lending, insurance distribution, and new platforms such as Share.Market, which offers stockbroking and mutual funds distribution, and Indus Appstore, an Android-based mobile app marketplace.

The IPO of PhonePe was supposed to be entirely an offer-for-sale (OFS) of up to 5,06,60,446 equity shares from existing shareholders, including WM Digital, Microsoft Global Finance, and Tiger Global. The company itself will not receive any proceeds from this mega-IPO as the company was eyeing to raise Rs 8,800-9,5000crore from its IPO, valuing company at $9-10 billion.

PhonePe reported over 65 crore registered users and a digital payments acceptance network covering more than 4.7 crore merchants as of 30 September 2025. IPO-bound PhonePe has recently filed its update draft red herring prospectus (UDRHP) with capital market regulator the Securities and Exchange Board of India (Sebi).

PhonePe has a leading position in the Indian UPI industry, accounting for over 48 per cent market share based on transaction value, having handled 9.8 billion transactions in December, according to NPCI data. Its losses widened to Rs 1,444 crore in the six months ended September 30, while revenue rose about 22 per cent to Rs 3,918 crore. Ebitda loss stood at Rs 2,130 crore.