PhonePe Eyes Mega ₹97,000 Crore IPO as Competition with Paytm Intensifies

PhonePe is preparing for a public listing that could value the Walmart-backed fintech firm at around ₹97,000 crore, drawing comparisons with its listed rival Paytm and setting the stage for a fresh contest in India’s fintech sector.

PhonePe currently leads the digital payments ecosystem in scale and reach. The platform commands more than 45% share of UPI transactions and has built a massive distribution network with about 618 million registered users and around 45 million merchants across India. A large share of its users—about 65%—come from Tier-2 cities and smaller towns, highlighting its deep penetration beyond metro markets.

Despite its dominance in payments, PhonePe remains focused on expanding beyond its core UPI business. Payments still contribute the majority of its revenue, but their share has gradually declined as newer segments such as lending and insurance gain traction. This diversification strategy is aimed at strengthening its growth narrative ahead of the IPO.

The comparison with Paytm, however, highlights contrasting business models. While PhonePe leads in transaction volumes and user reach, Paytm has built a more diversified revenue mix and has progressed faster on the path to profitability.

Paytm, which went public in 2021, has increasingly focused on merchant payments, financial services distribution and credit to drive monetisation. In contrast, PhonePe’s strength lies in the scale of its payments ecosystem and its expanding financial services offerings.

As PhonePe moves closer to its IPO, investors are likely to closely compare the two fintech giants, evaluating their scale, monetisation strategies and profitability prospects in India’s rapidly evolving digital payments market.