Fast Facts
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Investor Exit: Tiger Global and Microsoft plan to fully exit PhonePe, while Walmart retains majority ownership, selling up to 45.9 million shares in the Indian payment startup’s IPO.
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Share Sale: The IPO prospectus reveals a total of up to 50.66 million shares are up for sale, highlighting the liquidity for existing shareholders driven by investors rather than company management.
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Valuation Increase: PhonePe, valued at about $12 billion in early 2023, aims for a market cap of around $15 billion in the IPO, potentially raising up to $1.5 billion.
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Market Leadership: As the largest player in India’s digital payments, PhonePe outperformed Google Pay in transaction volumes, processing 9.81 billion transactions worth approximately $148.6 billion in December 2025.
Shift in Investor Landscape
Recently, both Tiger Global and Microsoft have announced that they will fully exit PhonePe, a prominent Indian payments startup backed by Walmart. This decision comes as PhonePe updates its IPO filing, giving investors insight into the shifting dynamics of global venture capital. By offering their complete stakes, these investors highlight a broader trend of cashing out amid India’s evolving public markets.
Walmart, however, plans to maintain its majority stake while selling up to 45.9 million shares, approximately 9% of PhonePe. Overall, the startup plans to sell about 50.66 million shares, which marks a significant liquidity event for current shareholders. This strategic move comes as PhonePe seeks to raise up to $1.5 billion, targeting a market capitalization of around $15 billion during the IPO.
PhonePe’s Growth Trajectory
Founded in 2015, PhonePe rapidly became a leader in India’s digital payments sector. The startup first gained traction through digital transactions and has since diversified into areas like stockbroking and mutual funds. It even provides an Android app store alternative, showcasing its versatile approach.
Recent data reveals PhonePe outperformed its main competitor, Google Pay, processing about 9.81 billion transactions worth ₹13.6 trillion in December 2025. Despite a 22% increase in revenue to ₹39.19 billion, the company’s losses have also widened, raising questions about its financial sustainability. Nevertheless, PhonePe’s journey illustrates the potential of digital finance in India, reflecting a significant step in the global transition towards cashless economies.
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