A valuation impasse for impending new-age listings is indicated by PhonePe's IPO postponement
The decision by PhonePe to delay its planned $1.3-billion IPO is emerging as a key signal for India’s startup ecosystem, potentially impacting the listing timelines of several new-age companies preparing to go public over the next year.
Market participants say the move reflects ongoing volatility in equity markets and a widening valuation gap between late-stage startups and public market investors, particularly mutual funds, which have turned more cautious about high-priced tech listings. If a company of PhonePe’s scale is choosing to wait, it suggests that investors are becoming increasingly price-sensitive, prompting other startups to reassess their IPO strategies.
A number of prominent startups—including Zepto, Oyo, Flipkart, Razorpay, Infra.Market, and Acko—are currently evaluating IPO plans within the next 12 months. While Zepto has confidentially filed to raise up to ₹11,000 crore, Oyo’s parent entity Prism has submitted plans to raise ₹6,650 crore through a public issue. Flipkart is also in discussions with bankers for a potential listing next year, while Infra.Market has already secured regulatory approval for a ₹5,000 crore offering and recently raised debt funding. Razorpay, meanwhile, has appointed bankers and is targeting a listing in the latter half of this year.
Despite these preparations, the broader IPO market has remained subdued since early 2026. Several recently listed new-age companies have had to reduce issue sizes and accept lower valuations due to market uncertainty and shifting investor expectations. Retail investor participation has also weakened, making institutional investors the primary drivers of IPO success.
As a result, many IPO-bound firms are now working closely with fund houses to gauge demand and fine-tune pricing strategies. For some startups, going public has become necessary due to a slowdown in growth-stage funding. However, companies with strong cash reserves are opting to wait for more favorable market conditions rather than risk undervaluation.
The cautious sentiment is not limited to public markets. In private markets as well, growth-stage funding rounds are facing delays or renegotiations, with investors seeking more realistic valuations in line with current market conditions. Startups that are still burning cash are particularly under pressure to accept revised terms in order to secure funding.
At the same time, many companies are using this period to strengthen internal systems, improve financial discipline, and align with regulatory requirements for public listings. Industry insiders suggest that most IPO-ready firms are keeping their documentation and approvals in place so they can move quickly once market conditions stabilize.
Overall, PhonePe’s decision highlights a broader reset in how startup valuations are being perceived, signaling a more disciplined and cautious phase for both public and private market investors in India’s tech ecosystem.
