PhonePe IPO Sparks Market Speculation: Can Paytm Shares Gain Momentum?

PhonePe’s much-anticipated IPO, with a valuation estimated at $13–15 billion, has become a pivotal event for India’s fintech sector. Global brokerage Macquarie notes that the listing could serve as a valuation benchmark for Paytm (One97 Communications), potentially driving a fresh rerating of its share price.

Despite PhonePe’s strong UPI market share and rapid revenue growth, the company remains EBITDA-negative. In contrast, Paytm has recently turned EBITDA-positive, giving it a profitability edge. Investors are closely watching whether PhonePe’s IPO valuation will recalibrate expectations for listed peers like Paytm.

Paytm shares have already reacted positively, rising 4% on Tuesday and another 2% on Wednesday, as market sentiment builds around the potential impact of PhonePe’s listing. Analysts believe the IPO could redefine competitive dynamics in India’s digital payments and fintech ecosystem.

Key Highlights

• PhonePe IPO Valuation: $13–15 billion
• Fundraising Goal: ~$1.5 billion via 10% stake sale
• Paytm Impact: IPO may act as valuation benchmark for Paytm
• Profitability Contrast: PhonePe EBITDA-negative vs. Paytm EBITDA-positive
• Market Reaction: Paytm shares gained ~6% over two sessions

PhonePe’s IPO is expected to be a watershed moment, influencing investor sentiment and competitive positioning across India’s fintech sector.

Sources: Macquarie Equity Research, Business Today, CNBC-TV18, BW Businessworld