Monday, 19 May, 2025

PhonePe's IPO Prospects Clouded by Heavy Reliance on Payments Revenue

As PhonePe prepares for its IPO, the Walmart-backed fintech remains heavily dependent on its core payments business, which accounts for 95% of its ₹5,064 crore revenue in FY24. Despite efforts to diversify into credit, insurance, and stockbroking, these segments contribute minimally. This lack of revenue diversification raises concerns about PhonePe's valuation and growth potential compared to rivals like Paytm, which have more balanced income streams.