PhonePe IPO: Walmart to reduce stake, Microsoft, Tiger Global exit

PhonePe IPO: Walmart to reduce stake, Microsoft, Tiger Global exit

Bengaluru-based digital payments platform PhonePe has filed an updated draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO).

The move marks a major step in the company's long-awaited stock market debut.

The IPO will be a pure offer-for-sale of up to 5.06 crore shares, without raising any fresh capital.

Walmart, Microsoft, and Tiger Global's role in PhonePe's IPO

Walmart, through its subsidiary WM Digital Commerce Holdings, plans to sell up to 4.59 crore shares or about 9% of PhonePe.

Meanwhile, Microsoft Global Finance Unlimited Company and Tiger Global PIP 9-1 Ltd will sell their entire stakes in the company.

The updated filing replaces an earlier draft and reflects changes in the proposed shareholder sell-down.

PhonePe's IPO under SEBI regulations

PhonePe's IPO is being made under Regulation 6(2) of the SEBI ICDR Regulations, a route available to companies that do not meet certain profitability thresholds.

The company has received in-principle approval to list its shares on the BSE and NSE.

However, pricing details including price band, issue size and timing of the offering are yet to be disclosed.

PhonePe's financial performance and future plans

After launching Unified Payments Interface (UPI) in April 2016, PhonePe became India's first private non-bank player to launch a UPI-based app.

The company has posted a loss of ₹1,444.4 crore for the six months ending September 2025, widening from a loss of ₹1,203.2 crore during the same period last fiscal year.

Despite these losses, PhonePe continues to lead the UPI payments market with its innovative digital payment solutions.