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Fintech major PhonePe has temporarily paused its IPO plans amid the ongoing war in Iran and parts of West Asia, as well as volatility in the global equity markets.
In a statement, the fintech company said it intends to restart the IPO process once global capital markets regain stability.
“We sincerely hope for a swift return to peace in all the affected regions. We remain committed to a public listing in India,” PhonePe CEO Sameer Nigam said, without giving any indication of when the company would be back on the IPO course.
However, sources close to the development told Inc42 that PhonePe is likely to push the IPO till at least June 2026.
The fintech giant received SEBI approval in January 2026 and has up to 12 months to launch its IPO, as per SEBI regulations. So, PhonePe does not need to rush the IPO process for the time being and can wait for market conditions to stabilise and geopolitical tensions to subside, the sources added.
It was reported earlier this month that the Walmart-owned company was planning to launch its IPO by April, targeting a valuation in the range of $9 Bn to $10.5 Bn. As per its DRHP, PhonePe is to go for an offer-for-sale (OFS) listing, with its backers offloading 5.07 Cr equity shares. Majority owner Walmart is expected to lead the way by offloading about 4.59 Cr equity shares, followed by Tiger Global and Microsoft. The IPO is expected to be in the range of $900 Mn to $1.5 Bn.
On the financial front, the company ‘s net loss for H1 FY26 jumped 20% to ₹1,444.4 Cr from ₹1,203.2 Cr in the same period previous fiscal year. Its top line surged 21% to ₹4,174.5 Cr from ₹3,459.7 Cr in H1 FY25.
Stock Markets, Domestic Consumption Reel
The conflict in West Asia and the subsequent war, which erupted at the end of February and is in its third week now, has wreaked havoc in the lives of citizens and businesses even in India. Much of this is due to the shortage of LPG and crude oil due to the conflict and disruptions to shipments stuck at the Strait of Hormuz.
As covered by Inc42 in the past two weeks, the shortage of LPG has resulted in many restaurants shutting down and households being left without cooking gas. The fuel shortage has also impacted other sectors of the economy.
The ongoing war has also pummelled the Indian equity market over the past three weeks. Both Sensex and Nifty 50 have crashed over 8% each since the beginning of the war at the end of February.
A key trigger for the bearish sentiment in the Indian market has been the sustained heavy selling by foreign institutional investors (FIIs), who have remained net sellers across segments.
“In the near-term, FIIs are likely to continue selling in the market, particularly when there is a mild rally in the market. This will add to the weakness in the market, even in fundamentally sound sectors and stocks,” Geojit Investments’ chief investment strategist VK Vijayakumar noted.
Will Other IPOs Get Hit?
PhonePe delaying its IPO could have a cascading effect on other listings. As one of the biggest listings expected this year, its IPO would have been a key indicator of the market appetite.
BharatPe, for instance, is preparing for an IPO after a turn to profitability. In recent weeks, sources close to the company had indicated that the PhonePe IPO would serve as a bellwether in the fintech space. Other fintech public listings such as Razorpay, Moneyview, PayU and large non-fintech IPOs such as OYO, Zetwerk, Rebel Foods and Zepto could also see some adjustment in their IPO timelines.
The scenario is similar to the spate of delayed IPOs at the tail end of 2022, when market sentiment had turned sour in the aftermath of rising interest rates, following the global zero interest rate fiscal policies.
However, this time, with serious armed conflict close to Indian shores and given Indian business interests in the Middle East, one can expect a severe impact on the IPO timelines for some of the above companies.
“Bankers and primary investors are currently exercising caution, as this is one of the most anticipated IPOs of the year. Given the prevailing market uncertainty, there is little appetite to proceed with a launch right now. Several other startups that were lining up for public listings are also likely to take a more measured approach. Those that are not in the final stages of launching their IPOs may choose to hold back for the time being and reassess market conditions before moving ahead,” a wealth manager at a leading mutual fund said.
The post PhonePe Pauses IPO Plans Amid War; Will Others Follow? appeared first on Inc42 Media.
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