New Delhi, Jan. 22 -- US retailer Walmart will trim its stake in PhonePe via the Indian digital payments company's upcoming initial public offering while Tiger Global and Microsoft will sell their entire stakes, according to updated draft documents.
PhonePe's IPO comprises an offer for sale of 50.66 million shares by Walmart, Tiger Global and Microsoft. This is 10% of the company's stake. The payments company itself isn't raising any fresh capital, per the updated draft red herring prospectus.
Walmart, which holds a 71.77% stake in PhonePe, is selling nearly 45.94 million shares in the IPO. Tiger Global, which owns only 0.2%, and Microsoft, which holds a 0.71% stake, will fully exit.
PhonePe's other investors include PE firms General Atlantic and TVS Capital as well as venture capital firm Ribbit Capital and Flipkart co-founder Binny Bansal's 3State Ventures. These investors are not selling any shares in the IPO. General Atlantic owns an 8.98% stake in PhonePe, 3State holds 1.03% while others own smaller holdings.
PhonePe had confidentially filed for an IPO in September last year and received regulatory approval earlier this month. It is likely to float the IPO by the middle of this year.
The company was last valued around Rs 1.2 trillion when General Atlantic lifted its stake via secondary transactions in September, according to VCCircle estimates. That would be close to $12.9 billion based on current foreign exchange rates. Media reports previously said the company could target a valuation of $15 billion in the IPO.
PhonePe competes with Google Pay and Paytm in India. It controls a market share of more than 45% in the unified payments interface (UPI) segment.
The company's loss widened to Rs 1,444 crore for the six-month period ended September 30, 2025, from a loss of Rs 1,203 crore a year earlier, while revenue climbed 22% to Rs 3,918 crore, the IPO documents show. For the year ended March 2025, it posted a loss of Rs 1,727.4 crore on revenue of Rs 7,114.8 crore.
Kotak Mahindra Capital, Goldman Sachs, Axis Capital, JPMorgan, Citi, JM Financial, Morgan Stanley and Jefferies are the book-running lead managers for the IPO.
Published by HT Digital Content Services with permission from VC Circle.