PhonePe Delays IPO
PhonePe was meant to be one of 2026’s biggest startup IPOs. Instead, the Walmart-backed decacorn has hit pause, blaming the war in West Asia for its decision. So, what’s the fintech juggernaut concerned about?
The Multi-Front Crisis: The decision to defer the listing until at least June 2026 is a calculation based on four critical pressure points:
- The ongoing geopolitical tensions have caused markets to crash and wiped out billions in investor wealth. This has created a risk-off environment where large tech IPOs are unlikely to find buyers.
- With FIIs pulling out thousands of crores from Indian equities this month, the lack of institutional liquidity for PhonePe’s OFS-only (5.06 Cr shares) IPO would make a successful debut difficult.
- PhonePe’s bankers have reportedly recommended adjusting the IPO valuation to attract wary investors, creating fears of a down round. It was said to be looking to raise $900 Mn to $1.5 Bn at a likely valuation of $9 Bn to $10.5 Bn.
- Despite a robust top line, PhonePe’s growing losses and foray into new segments continue to weigh on its balance sheet.
The Bellwether Effect: PhonePe IPO is not just another listing, but rather an industry barometer. Its decision to wait could create a cascading effect across the ecosystem, forcing firms like Razorpay, Moneyview, Zepto and OYO to reassess their IPO timelines. An industry insider said that bankers are currently in a wait-and-watch mode, as a failed or lukewarm debut for India’s UPI leader would likely freeze the primary market for the rest of the year.
With the fintech major in tactical retreat, what forced PhonePe to postpone its IPO plans? Let’s find out…
From The Editor’s Desk
🛵 Ola Electric Goes Fundraising
- The troubled EV maker is looking to raise up to ₹2,000 Cr by diluting a portion of its stake in battery subsidiary, Ola Cell Technologies. The company is in discussions with sovereign wealth funds and global infrastructure investors for the infusion.
- The Bhavish Aggarwal-led company has been looking to raise funds for some time now. In late-2025, the OEM received board nod to raise ₹1,500 Cr via a QIP, but the plan failed to take off.
- The development comes as Ola Electric has been grappling with a slew of issues, including declining market share, falling stock prices, tanking sales, regulatory scrutiny, among others.
💸 Ecofy Nets $42 Mn
- The NBFC has raised ₹380 Cr in an equity round led by BII and Finnfund to scale up its green financing offerings. This follows the company raising $12.5 Mn in debt in March last year.
- Founded in 2023, Ecofy provides loans to SMEs and individuals for electric vehicles, rooftop solar installations and energy-efficient equipment. It claims to have so far served 1.25 Lakh customers to date and has ₹1,400 Cr in AUM.
- On the financial front, the NBFC’s net loss rose 16% YoY to ₹42.3 Cr in FY25, while operating revenue grew nearly 3X YoY to ₹102.9 Cr.
🚀 FabHotels Gets SEBI Nod For IPO
- The budget hotel chain’s parent entity Travelstack Tech has received the markets regulator’s nod to float its IPO. SEBI issued its observation letter to the company on March 11.
- The company’s proposed IPO comprises a fresh issue of shares worth up to ₹250 Cr and an OFS component of up to 2.69 Cr shares.
- Founded in 2014, FabHotels operates 1,379 properties across India. It also runs a SaaS platform TravelPlus, which allows businesses to simplify travel for their workforce. Travelstack reported a profit of ₹32.2 Cr in H1 FY26 on a top line of ₹400.4 Cr.
📉 Fino Stock Tanks To Record Lows
- Shares of the payments bank tanked 19.6% during intraday trading yesterday to hit a 52-week low of ₹136 on the BSE. It eventually pared some of the losses to close the day 17.3% lower at ₹139.85.
- The tumble came after a report suggested that DGGI was mulling recommending an ED probe into suspected money laundering transactions connected to the bank. However, Fino Payments Bank has rejected the report.
- This comes weeks after Fino Payments Bank MD and CEO Rishi Gupta was arrested over alleged GST evasion. The DGGI then alleged that Gupta helmed an organised syndicate that routed funds linked to illegal online gaming platforms via shell entities.
📢 MakeMyTrip Mulls India IPO
- The Nasdaq-listed travel tech major is evaluating a potential listing on the Indian bourses. As part of this, the company has completed an internal restructure by combining its key brands under a single Indian entity.
- The travel tech company sees the local IPO opening access to domestic capital, bolstering its presence in the core market and consolidating leadership. The listing, however, is contingent on the company getting key regulatory approvals.
- The travel major is weighing a domestic IPO nearly 16 years after listing on Nasdaq in 2010. At the time, MMT opted for a US listing due to factors such as greater market maturity and access to institutional capital for its tech-focused business.
Inc42 Markets
Inc42 Startup Spotlight
Can Vayve’s Micro Car Fix India’s EV Woes?
Range anxiety and patchy charging infrastructure still hold back many urban Indians from switching to electric cars. Vayve Mobility is betting that its compact, solar-assisted EV can fix these pain points
A Solar-Powered Ride: Founded in 2021, Vayve Mobility is developing compact, solar-powered electric vehicles designed specifically for city commuting. By integrating solar charging directly into the vehicle, the startup enables users to supplement battery charging using renewable energy.
Made For Urban India: The startup’s flagship vehicle, Eva, is a compact two-seater designed to easily slip into parking spots. The car targets up to 250 km of range on a single charge, with an integrated solar roof that can top up useful daily mileage. The vehicle is planned with liquid-cooled batteries, regenerative braking and connected features to optimise efficiency and monitoring.
Safety and usability issues are being addressed through a monocoque chassis, airbags, rear parking camera and hill-hold assist.
Flexible Ownership Moat: To tackle upfront cost barriers, Vayve is exploring a battery-as-a-service model, separating vehicle and battery ownership to reduce initial outlay. With deliveries slated to begin late this year, can Vayve’s micro-car disrupt the modern Indian commute?
Infographic Of The Day
India’s semiconductor ambitions are no longer just policy talk – startups and investors are stepping up to power the ecosystem. So, who is shaping India’s semiconductor future…
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