Walmart (WMT) backed Indian fintech giant PhonePe has suspended its highly anticipated initial public offering (IPO), citing extreme market volatility and escalating geopolitical tensions in the Middle East. The planned listing, expected to be one of India’s most closely watched technology listings and featuring exits by Walmart, Microsoft (MSFT), and Tiger Global, has been put on hold until global market conditions improve.
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PhonePe Delays IPO as Market Turbulence Intensifies
In a March 16 announcement, PhonePe confirmed it has temporarily deferred its public market listing process due to the ongoing geopolitical tensions between the U.S. and Iran. The company, which secured approval from the Securities and Exchange Board of India (SEBI) earlier in January 2026, had initially targeted a launch by April at a valuation between $9 billion and 10.5 billion.
According to its draft red herring prospectus (DRHP), the IPO was expected to raise about $900 million to $1.5 billion through an offer-for-sale (OFS), with early backers planning to offload roughly 5.07 crore equity shares. Walmart, the majority shareholder, was expected to lead the sale by offloading around 4.59 crore shares, followed by Tiger Global and Microsoft.
The prudent pause follows after a sharp downturn in Indian equity markets. Benchmark indices such as the BSE Sensex and Nifty 50 have fallen more than 8% since late February, exacerbated by foreign institutional investor (FII) sell-offs, supply disruptions, including LPG shortages, and global jitters.
Commenting on the decision, PhonePe CEO Sameer Nigam said, “We sincerely hope for a swift return to peace in all the affected regions. We remain committed to a public listing in India.” Sources familiar with the matter indicate PhonePe may target June 2026 or later, within its 12-month SEBI approval window.
IPO Delay Risks Stalling India’s Startup Parade
PhonePe’s decision to put its IPO on hold could send ripples well beyond the company itself. As one of India’s dominant players in the Unified Payments Interface space, with over 650 million users and 47 million merchants, the company’s listing had been widely watched as a bellwether for investor appetite in the startup sector.
That appetite has taken a significant hit. Six of the ten companies that went public in 2026 opened below their issue price, with average returns of just 2%, a steep decline from the 16.5% recorded in early 2025.
With sentiment this fragile, several high-profile Indian companies eyeing public listings may be forced to pause and reassess. BharatPe, which has been actively preparing for an IPO, alongside fintech players Razorpay and Moneyview, and non-fintech startups OYO and Zetwerk, is likely to weigh the timing and valuation of its listing carefully until market conditions show clearer signs of recovery.
Is Walmart Stock a Good Buy Now?
Currently trading near $125, Walmart (WMT) holds a ‘Strong Buy’ consensus according to TipRanks Wall Street analysts. The stock is projected to reach an average price target of $138.9, representing a 10% upside. Meanwhile, PhonePe, a private company majorly owned by Walmart, is not yet publicly traded on stock exchanges. However, it is preparing for an IPO in June 2026 or later, within its 12-month SEBI approval window. To learn more about PhonePe, visit TipRanks’ Private Company Center.
