PhonePe IPO Soon? ESOP Buyback Confirms The News

The speculation around PhonePe’s much-anticipated IPO just got a lot stronger. The fintech giant has initiated a massive ESOP buyback programme worth INR 700–800 Cr, a move widely seen as a clear sign of its public listing plans.

According to sources, at least 1,000 employees are eligible under the scheme, though the final number could increase if the company decides to scale up the buyback. With a total workforce of nearly 12,000 people, this marks one of the largest pre-IPO buyback initiatives in India’s startup ecosystem.

PhonePe IPO Soon! Buyback as a Signal

Employee Stock Ownership Plan (ESOP) buybacks are often viewed as precursors to IPO filings, and PhonePe’s timing is telling. The programme not only rewards early employees with liquidity but also signals the company’s intent to align its workforce and strengthen confidence ahead of going public.

Though PhonePe has not issued an official statement, insiders confirm the buyback coincides with the company’s plan to pre-file IPO papers later this month.

IPO Preparations in Motion

The Walmart-owned company has already brought on board top global investment banks like Kotak Mahindra, Citigroup, JP Morgan, and Morgan Stanley to steer the process. Reports suggest PhonePe is aiming to raise between $1.2 Bn and $1.5 Bn (INR 10,000–13,000 Cr), with a likely listing in early 2026.

The public issue will be structured as a mix of fresh shares and an offer for sale (OFS). While Walmart is expected to retain its stronghold, long-time investors such as Tiger Global and General Atlantic may look for partial exits.

PhonePe Valuation Story

PhonePe last raised funding at a valuation of $12 Bn, but insiders expect the IPO to be priced around $7–8 Bn, factoring in the broader correction in tech valuations.

Market experts, however, note that despite the markdown, PhonePe remains a fintech heavyweight, thanks to its dominance in UPI payments and expanding portfolio of financial services.

• UPI Market Share: 46.5% (August data)

• Funding Raised: Nearly $2.3 Bn to date from marquee investors including Ribbit Capital, Tiger Global, Tencent, and TVS Capital Funds

• Employees: 12,000+

• Business Verticals: UPI payments, insurance, credit, broking, and quick commerce via Pincode

Setting the Stage for India’s IPO Season

PhonePe is part of a larger wave of startups preparing for Dalal Street debuts. Pine Labs, Groww, and Kissht are also eyeing listings in the coming months. But given its market share and scale, PhonePe’s IPO will be among the most closely watched events in India’s fintech landscape.

PhonePe’s INR 800 Cr ESOP buyback is more than just an employee reward programme—it’s the strongest confirmation yet of its IPO ambitions. As the company edges closer to filing its papers, this move cements its readiness to step into the public market spotlight.

If successful, the IPO will not only create wealth for investors and employees but also set the tone for India’s startup IPO season.