Phonepe: A tale of two valuations: The Paytm stock in the era of PhonePe

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From left, Sameer Nigam, cofounder and CEO, PhonePe; Vijay Shekhar Sharma, founder and CEO, Paytm

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Is PhonePe’s 3x valuation over its competitor Paytm justified? The vintage and monetisation strategies of both payments players are quite different and PhonePe investors are hoping that the company can do everything better than Paytm at thrice the scale.

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Phonepe: A tale of two valuations: The Paytm stock in the era of PhonePe


From left, Sameer Nigam, cofounder and CEO, PhonePe; Vijay Shekhar Sharma, founder and CEO, Paytm

Synopsis

Is PhonePe’s 3x valuation over its competitor Paytm justified? The vintage and monetisation strategies of both payments players are quite different and PhonePe investors are hoping that the company can do everything better than Paytm at thrice the scale.

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Last weekend, everyone on the corridors of the Indian fintech world was busy discussing one topic – PhonePe’s USD350 million fundraise at a USD12 billion pre-money valuation. This was the first tranche of a billion-dollar funding round, with a large part coming from its parent, US retail behemoth Walmart. But how can PhonePe command a 3x valuation over its competitor Paytm even though the latter is far ahead in terms of monetising its user base?

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

utton>Sign In to Read for Free utton>



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Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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