Microsoft and Tiger Global are set to sell their entire stakes in Indian digital payments firm PhonePe as part of its upcoming initial public offering. According to an updated draft prospectus, the IPO will consist entirely of an offer-for-sale (OFS) by existing shareholders, meaning PhonePe will not raise fresh capital from the listing.
Walmart, the parent company and majority stakeholder, will sell up to 45.9 million shares, reducing its stake but remaining the largest shareholder. The complete divestment by Microsoft and Tiger Global allows the early backers to fully capitalize on their investment in the rapidly growing fintech platform, which is a leader in India's Unified Payments Interface (UPI) market.