PhonePe IPO delayed amidst market uncertainty.
Fintech giant PhonePe has announced a temporary halt to its IPO plans, citing volatility in global equity markets. The decision marks a significant shift in the Indian IPO landscape, which had been gearing up for a busy year with numerous high-profile startups preparing to go public.
The company stated it intends to revive the IPO process once global conditions stabilize. This move comes amidst geopolitical tensions in West Asia, which have led to increased investor caution.
Other large-scale startup listings, including quick-commerce firm Zepto, which quietly filed for a $1.22 billion IPO in December 2025, and OYO’s parent PRISM, which submitted pre-filed draft papers after shareholder approval, are also anticipated. Flipkart has completed its redomiciling to India after receiving government approval, a precursor to its eventual India listing.
Market analysts suggest investors have become hesitant due to uncertainty surrounding the geopolitical situation and its potential long-term impact on the global economy and financial markets. This caution has led to liquidity moving out of the primary market, softening demand for new listings and making it difficult for companies to secure premium valuations.
India’s markets have shed more than 12% since January, with the sharpest decline occurring after the escalation of the Iran conflict. This has exposed fragilities in a market that has been trading at valuation premiums significantly above long-term averages.
Investment bankers are advising IPO-bound companies to cut valuation expectations by 20–30%. The fundamental question is whether India will return to its premium valuations once geopolitical tensions ease or undergo a structural normalization where only profitable, cash-flow-positive companies will get meaningful demand.
Foreign investor behavior, particularly FII outflows of over $9 billion this month, is raising concerns about a potential liquidity drought in the IPO market. Foreign funds typically anchor the largest blocks in pre-IPO and anchor allocations, setting the tone for broader market subscription.
Some analysts believe this is more of a risk-off phase than a structural reset, noting that domestic institutional depth is stronger today, and quality companies with clear profitability pathways continue to see appetite. However, tech founders are realizing that without foreign capital to set benchmarks, an IPO could become a value-destructive exercise.
Ola Electric has proposed reallocating ₹575 Cr of its IPO proceeds from research and product development to organic growth and debt repayment. Nazara Technologies, through its UK arm, has inked definitive agreements to buy about 50% controlling stakes in Spain’s Bluetile Games and BestPlay Systems for $100.3 Mn. PhysicsWallah has received a ₹263.3 Cr tax demand under Section 143(3). SBI Mutual Fund acquired an additional 4% stake in Urban Company through bulk and block deals worth about ₹632 Cr.
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