Why PhonePe Waits at Home While MakeMyTrip Eyes a Return

There is a quiet paradox unfolding in India’s IPO landscape. At a time when domestic capital markets have deepened and retail participation has surged, one of India’s largest fintech firms has chosen to delay its listing at home. Meanwhile, a company that left Indian markets years ago is considering a return. 

PhonePe has paused its planned IPO, citing geopolitical tensions and global market volatility. MakeMyTrip, which has been listed on Nasdaq for over 15 years, is evaluating a domestic listing of its India operations. The divergence appears, at first glance, to be about timing. But it also reflects a deeper question—where companies believe they are best understood, and best valued. 
Emails sent to MakeMyTrip seeking comment did not elicit a response till the time of publication. 

Between timing the market and choosing the market 

PhonePe’s decision follows a familiar global instinct. When markets turn uncertain, companies wait. With geopolitical tensions pushing up oil prices and investors turning cautious, listing now could mean accepting a lower valuation than expected. For a company that was last valued at around $14.5 billion and is reportedly targeting a lower public market entry, even a modest correction could have significant implications. "We paused the process only because of the current market conditions which are unrelated to PhonePe. Any allusions to the pause being related to PhonePe specific issues such as valuation are baseless,'' PhonePe Spokesperson said.

It helps that PhonePe has the ability to wait. With a dominant share in India’s UPI ecosystem—processing billions of transactions monthly—and the backing of Walmart, it is not under immediate pressure to access public capital. In that sense, deferring the IPO appears to be a measured decision aimed at preserving valuation discipline. 

MakeMyTrip, however, finds itself in a different position. Its market capitalisation has fallen sharply—from around $10 billion to $4.5 billion in recent months—while its financial performance has shown strain, with profits declining significantly despite modest revenue growth. Yet, the broader travel demand in India has not weakened in the same proportion. 

This disconnect is important. It suggests that the issue may not lie entirely in the business itself, but in how it is being priced. 

Having been listed on Nasdaq, MakeMyTrip is exposed to global investor sentiment, which has recently been cautious on both technology and emerging markets. In that context, its decision to explore a domestic listing appears less about short-term timing and more about recalibrating how the business is valued. 

A more structural shift in how companies think about listings 

MakeMyTrip’s recent restructuring—consolidating its India operations under a single entity and folding in assets like RedBus—signals preparation for such a shift. Alongside this, its acquisitions and investments, including Flamingo Transworld and Atlys, point to a broader ambition to expand its travel ecosystem. 

A domestic listing could support this strategy in multiple ways. It would provide access to local capital, enable the use of listed equity for acquisitions, and potentially align the company more closely with India’s consumption-driven narrative. Domestic markets, supported by strong retail and institutional participation, may also offer more relevant comparables for such a business. 

PhonePe, in contrast, is managing a different kind of risk. Listing in a volatile environment could set a lower valuation benchmark, with long-term implications for investor perception and future fundraising. Waiting, therefore, is not just about avoiding immediate downside but about preserving strategic flexibility. 

The contrast between the two companies highlights a broader shift. Indian firms are no longer approaching IPOs as purely financial milestones. Increasingly, they are strategic decisions shaped by both timing and geography. 

Globally, this tension is visible as well. Companies in the US and Europe have delayed listings amid uncertainty, while China has continued to push domestic listings more aggressively despite economic headwinds. India sits somewhere in between—benefiting from deepening local markets, yet still exposed to global capital flows and external shocks. 

This makes the choice more complex. Listing overseas may offer access to global capital and, at times, higher multiples, but it also exposes companies to sentiment that may not reflect domestic fundamentals. Listing in India offers closer alignment with the core business, but does not fully insulate against global volatility. 

The divergence between PhonePe and MakeMyTrip reflects this balancing act. One is choosing to wait for more favourable conditions before entering the market. The other is reconsidering where it should be listed in the first place. 

Both approaches are grounded in logic. But they point to an emerging reality: in an increasingly uncertain global environment, the question is no longer just when to go public, but where that decision makes the most sense.