By Jason Chau
An India digital payments company backed by Microsoft and Walmart is gearing up to go public in a test of investors' appetite in the country after a flurry of IPO activity last year.
According to a draft prospectus filed Wednesday, Microsoft plans to exit its stake in Bangalore-based PhonePe, while Walmart will pare down its holding.
The fintech company said it aims to offer 50.7 million shares held by existing shareholders. It is not seeking to issue any new shares, and didn't offer any more deal terms.
As part of the offering, Microsoft and New York-based investment firm Tiger Global Management, will sell their respective 0.7% and 0.2% stakes in PhonePe.
Walmart entity WM Digital Commerce Holdings, which owns more than 70% of the company, will put up 12% of its stake for sale, prospectus showed.
PhonePe, which vies with Google Pay and Paytm for position in India's growing fintech market, expects the listing to boost its visibility and brand image.
It will not receive any proceeds from the "exit-only IPO".
Founded in 2015, PhonePe, commands a nearly 50% slice of India's UPI--a government-backed payment system linking bank accounts with fintech apps--in terms of transaction volume, consulting firm Redseer Strategy Consultants said in a recent report.
India's digital payments industry has boomed in the past decade, driven by smartphone adoption, increasing financial inclusion and policy support.
Digital consumer payments are projected to grow at a 15%-18% compound annual rate through 2030, said Redseer.
Citi, J.P Morgan, Morgan Stanley and Goldman Sachs are among the banks advising on the offering.
Write to Jason Chau at jason.chau@wsj.com
(END) Dow Jones Newswires
January 22, 2026 06:38 ET (11:38 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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