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Next More layoffs at Krutrim; PhonePe vs Paytm Want this newsletter delivered to your inbox? Also in the letter Krutrim trims staff again, this time
Next More layoffs at Krutrim; PhonePe vs Paytm Want this newsletter delivered to your inbox? Also in the letter Krutrim trims staff again, this time by another half What’s happening Employees raise concerns Also Read Revenue reality Big picture ETtech Explainer: Why PhonePe's UPI lead lags Paytm's profits Where Paytm pulled ahead The two generated similar revenue— Rs 8,437 crore for Paytm and Rs 7,920 crore for PhonePe —but their bottom lines diverged sharply. and —but their bottom lines diverged sharply. Paytm swung to a Rs 552-crore profit as expenses declined, while PhonePe's loss widened to Rs 2,792 crore amid continued investment.
Paytm's financial-services distribution business grew 52% and now contributes nearly a third of revenue. Its 15.1 million merchant subscriptions also provide recurring device income and support loan distribution. PhonePe's scale and challenge PhonePe accounted for 46.15% of UPI volumes in June, almost six times Paytm's share. That reach gives it a powerful distribution funnel, but basic payments remain difficult to monetise. Revenue growth was also hit by the end of credit-card rent payments and real-money gaming-related income. PhonePe must scale lending, insurance, wealth and merchant services; Paytm must sustain its new profitability while rebuilding consumer-payment share.
Also Read What led to PhonePe delaying its IPO? Beyond war, valuation a major concern Deepinder Goyal's Temple eyes $500 million valuation as it prices debut wearable at Rs 80,000 More on this “We are seeing strong interest from external investors at a $500 million valuation. Before we close the next round, I want some of this value to reach the people who created it,” Goyal wrote in a memo to the staff. Temple has launched a partial Esop (employee stock option) buyback at a $375 million valuation. Eligible employees can sell up to 25% of their vested Esops.
The move comes as the company prepares to launch its first health wearable, expected to be priced at Rs 75,000-80,000. Also Read Deepinder Goyal's wearable startup Temple raises $54 million from Steadview, Peak XV, others About the device AI surveillance, multi-session NEET can restore trust: IIT Madras director Driving the news Also Read On the leak Yes, and Also Read Other Top Stories By Our Reporters Kaynes' expansion plans Bombay Shaving Company's FY26 report Global Picks We Are Reading
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