Daybreak Phonepe is taking the IPO leap. But can it avoid Paytm’s fate?
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Oct 2, 2025 PhonePe is gearing up for a $15 billion IPO, presenting a strong case compared to Paytm's rocky debut. With narrowing losses and a clean regulatory record, it appears more stable, though challenges like subsidy cuts loom. Walmart's role as a major investor adds weight, but questions about market conditions and risk remain. The upcoming UPI market-share cap could also impact its growth strategy. Industry insights reveal how PhonePe aims to diversify its revenues and attract retail investors despite potential pitfalls.
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Cautious IPO Timing Matters
- PhonePe filed confidentially for a $1.5 billion IPO at a $15 billion valuation, entering a more sober fintech market than 2021.
- Investor appetite has cooled since Paytm's flop, so steady financials matter more now.
Cleaner Books Win Trust
- PhonePe shows narrowing losses and cleaner regulatory record versus Paytm, making it more appealing to wary investors.
- Regulatory stability and measured growth increase its credibility for a public listing.
Walmart’s Deep Bet On PhonePe
- Walmart acquired Flipkart (and thus PhonePe) in 2018 and later separated and invested further in PhonePe.
- In 2022 Walmart paid most of a $1bn tax to move PhonePe's HQ to India and then increased its stake to nearly 90%.