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Article: PhonePe pauses IPO; Databricks' India ramp-up

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PhonePe pauses IPO; Databricks' India ramp-up
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PhonePe has deferred its IPO, citing West Asia crisis-linked market volatility and valuation concerns. This and more in today's ETtech Top 5.
Also in the letter:
■ Fino stares at ED probe
■ Travis Kalanick is back!
■ How AI affects your breaks
Digital payments firm PhonePe has postponed its planned $1.3 billion initial public offering (IPO), citing volatile markets and geopolitical tensions. The company said it will restart the listing process once global capital markets stabilise.
What's happening? While PhonePe publicly pointed to uncertainty triggered by the West Asia crisis, sources said valuation disagreements with bankers also played a role.
The Walmart-owned company is currently valued at around $15 billion, but investor appetite is closer to $7 billion, sources told us.
Also Read: PhonePe IPO: Can the fintech giant convince markets it’s about more than payments?
Rival update: PhonePe's listing comes as two other large payment companies — Paytm and Pine Labs — are already public. Pine Labs primarily focuses on merchant payment infrastructure, while Paytm competes more directly with PhonePe in consumer digital payments and financial services.
A Bernstein report last month said PhonePe still trails Paytm in monetisation, though both companies operate with similar margins. The report also noted that regulatory challenges in FY26 slowed PhonePe’s progress towards profitability.
Financials (H1 2025):
Also Read: ‘Don't rush to deploy AI build foundations first’: PhonePe CTO Rahul Chari
Data analytics and AI platform Databricks is expanding its presence in India, planning to increase hiring and investments in the country from its Bengaluru hub, as demand for AI and data infrastructure grows.
Driving the news: The company's India team is approaching 1,000 people, and hiring is expected to accelerate through 2026, Naveen Zutshi, chief information officer at Databricks, told us in an interview.
“We have seen good growth here. Initially, we were more focused on digital natives, but over the last two to three years, we have seen a massive shift on the enterprise side as well,” he said.
Business upswing: Databricks, which was valued at $134 billion in February, counts India as one of its fastest-growing markets globally.
Also Read: AI analytics company Databricks looks to ramp up India play
Zutshi said the company is seeing double-digit growth in the country, mainly driven by rising demand from both startups and large corporations. Clients in India include Swiggy, Cred, Zepto, Freshworks, IndusInd Bank, and Hindalco Industries. The company competes with Snowflake and other data platforms.
India's role in AI: Zutshi said the spread of AI will reshape technology jobs, requiring workers to develop “AI fluency” as roles evolve. He also pointed to India’s deep talent pool. “You can see smaller teams building agentic-first solutions that could disrupt traditional software companies. It’s still early, but when I talk to VCs and founders, you can see what they are trying to build.”
Also Read: India is about world class tech talent, not low cost outsourcing: Databricks cofounder
The Directorate General of Goods and Services Tax Intelligence (DGGI) may recommend an Enforcement Directorate (ED) investigation into online gaming transactions linked to Fino Payments Bank, after officials found suspected money-laundering patterns, people familiar with the matter said.
What's happening?
The issue drew attention after the DGGI’s Hyderabad unit arrested the bank’s CEO, Rishi Gupta, last week. The bank has challenged the arrest in court, with the bench reserving its order until March 17.
Fino's clarification: Gupta's counsel told the court that the bank only provides payment infrastructure and is not responsible for the tax compliance by buyers or sellers using its platform.
They added that the GST investigation concerns programme managers or merchants operating across multiple banks, including Fino Payments Bank, rather than the bank’s own compliance. The bank has also paid the GST amount demanded by the authorities.
After nearly eight years of operating quietly, Uber cofounder Travis Kalanick has brought his startup, Atoms, out of stealth mode. The company is a rebrand of his ghost-kitchen venture, CloudKitchens, and is expanding into robotics and automation across food service, mining, and transport.
On the downlow: Speaking on the TBPN podcast, Kalanick said he deliberately kept a low profile after the intense scrutiny during Uber’s early years. "I got to wake up every day and just get to work," he said, adding that the company built its operations directly with thousands of employees working largely off LinkedIn.
On AI vs jobs: Atoms marks Kalanick's return to hardware and AI infrastructure amid a growing interest in robotics. He argued that as machines automate most tasks, the remaining human roles could become bottlenecks for progress, potentially increasing their value in the economy.
On fundraising: Kalanick also cautioned founders about easy capital. He described fundraising as “a competitive advantage or a strategic weapon” but warned that if a raise feels effortless, “you messed up”.
Referring to SoftBank’s investment spree in the 2010s, he said, “There was a problem with getting Masa [Masayoshi Son] money. Because it was easy money. And it was too loose,” he said. “And people would get loose with the culture of the investor that they were getting the money from.”
Also Read: Of rides & rivals: Travis Kalanick on Uber’s capital strategy, competition with Lyft
SaaS developers and HR leaders report that generative AI is eliminating breaks rather than reducing workloads, as quick task assistance tempts workers to fill micro-gaps such as file loading or pre-lunch waits.
What's happening: Researchers have termed this "workload creep," in which automation raises targets and cognitive demands rather than easing effort.
Rising pressures: According to Amit Khanna of Grant Thornton, mid-level managers lag behind in AI adoption compared with juniors/seniors, while the C-suite faces board demands for tangible results.
Also Read: AI may push more women out of workforce: Study
Also in the letter:
■ Fino stares at ED probe
■ Travis Kalanick is back!
■ How AI affects your breaks
What led to PhonePe delaying its IPO? Beyond war, valuation a major concern
(L-R) Sameer Nigam and Rahul Chari, cofounders, PhonePeDigital payments firm PhonePe has postponed its planned $1.3 billion initial public offering (IPO), citing volatile markets and geopolitical tensions. The company said it will restart the listing process once global capital markets stabilise.
What's happening? While PhonePe publicly pointed to uncertainty triggered by the West Asia crisis, sources said valuation disagreements with bankers also played a role.
The Walmart-owned company is currently valued at around $15 billion, but investor appetite is closer to $7 billion, sources told us.
Also Read: PhonePe IPO: Can the fintech giant convince markets it’s about more than payments?
Rival update: PhonePe's listing comes as two other large payment companies — Paytm and Pine Labs — are already public. Pine Labs primarily focuses on merchant payment infrastructure, while Paytm competes more directly with PhonePe in consumer digital payments and financial services.
A Bernstein report last month said PhonePe still trails Paytm in monetisation, though both companies operate with similar margins. The report also noted that regulatory challenges in FY26 slowed PhonePe’s progress towards profitability.
Financials (H1 2025):
- Revenue: Rs 3,918 crore, up 22% year-on-year (YoY) for the six months ended September 2025.
- Net loss: widened to Rs 1,444 crore from Rs 1,203 crore a year earlier.
Also Read: ‘Don't rush to deploy AI build foundations first’: PhonePe CTO Rahul Chari
Databricks to ramp up India hiring, R&D: CIO Naveen Zutshi
Naveen Zutshi, CIO, DatabricksData analytics and AI platform Databricks is expanding its presence in India, planning to increase hiring and investments in the country from its Bengaluru hub, as demand for AI and data infrastructure grows.
Driving the news: The company's India team is approaching 1,000 people, and hiring is expected to accelerate through 2026, Naveen Zutshi, chief information officer at Databricks, told us in an interview.
“We have seen good growth here. Initially, we were more focused on digital natives, but over the last two to three years, we have seen a massive shift on the enterprise side as well,” he said.
Business upswing: Databricks, which was valued at $134 billion in February, counts India as one of its fastest-growing markets globally.
Also Read: AI analytics company Databricks looks to ramp up India play
Zutshi said the company is seeing double-digit growth in the country, mainly driven by rising demand from both startups and large corporations. Clients in India include Swiggy, Cred, Zepto, Freshworks, IndusInd Bank, and Hindalco Industries. The company competes with Snowflake and other data platforms.
India's role in AI: Zutshi said the spread of AI will reshape technology jobs, requiring workers to develop “AI fluency” as roles evolve. He also pointed to India’s deep talent pool. “You can see smaller teams building agentic-first solutions that could disrupt traditional software companies. It’s still early, but when I talk to VCs and founders, you can see what they are trying to build.”
Also Read: India is about world class tech talent, not low cost outsourcing: Databricks cofounder
Gaming transactions involving Fino Bank may face ED probe
The Directorate General of Goods and Services Tax Intelligence (DGGI) may recommend an Enforcement Directorate (ED) investigation into online gaming transactions linked to Fino Payments Bank, after officials found suspected money-laundering patterns, people familiar with the matter said.
What's happening?
- Investigators identified cases where funds were routed through multiple accounts and entities to obscure their origin.
- Officials believe the transactions may warrant scrutiny under anti-money laundering laws.
- The development is tied to a broader probe into alleged GST evasion by online betting platforms, involving transactions worth around Rs 10,000 crore.
The issue drew attention after the DGGI’s Hyderabad unit arrested the bank’s CEO, Rishi Gupta, last week. The bank has challenged the arrest in court, with the bench reserving its order until March 17.
Fino's clarification: Gupta's counsel told the court that the bank only provides payment infrastructure and is not responsible for the tax compliance by buyers or sellers using its platform.
They added that the GST investigation concerns programme managers or merchants operating across multiple banks, including Fino Payments Bank, rather than the bank’s own compliance. The bank has also paid the GST amount demanded by the authorities.
Uber founder Travis Kalanick rebrands existing venture to Atoms with focus on robotics
Travis Kalanick, founder, UberAfter nearly eight years of operating quietly, Uber cofounder Travis Kalanick has brought his startup, Atoms, out of stealth mode. The company is a rebrand of his ghost-kitchen venture, CloudKitchens, and is expanding into robotics and automation across food service, mining, and transport.
On the downlow: Speaking on the TBPN podcast, Kalanick said he deliberately kept a low profile after the intense scrutiny during Uber’s early years. "I got to wake up every day and just get to work," he said, adding that the company built its operations directly with thousands of employees working largely off LinkedIn.
On AI vs jobs: Atoms marks Kalanick's return to hardware and AI infrastructure amid a growing interest in robotics. He argued that as machines automate most tasks, the remaining human roles could become bottlenecks for progress, potentially increasing their value in the economy.
On fundraising: Kalanick also cautioned founders about easy capital. He described fundraising as “a competitive advantage or a strategic weapon” but warned that if a raise feels effortless, “you messed up”.
Referring to SoftBank’s investment spree in the 2010s, he said, “There was a problem with getting Masa [Masayoshi Son] money. Because it was easy money. And it was too loose,” he said. “And people would get loose with the culture of the investor that they were getting the money from.”
Also Read: Of rides & rivals: Travis Kalanick on Uber’s capital strategy, competition with Lyft
AI push speeds up work, but quietly shrinks breaks
SaaS developers and HR leaders report that generative AI is eliminating breaks rather than reducing workloads, as quick task assistance tempts workers to fill micro-gaps such as file loading or pre-lunch waits.
What's happening: Researchers have termed this "workload creep," in which automation raises targets and cognitive demands rather than easing effort.
- At healthcare technology firm Innovaccer, the focus of AI adoption is to shift the cognitive load of work upward rather than simply accelerating tasks.
- Dhirendra Nath, CHRO at digital business enabler Altimetrik, said that where AI is effectively integrated into engineering workflows, it drives efficiency gains.
Rising pressures: According to Amit Khanna of Grant Thornton, mid-level managers lag behind in AI adoption compared with juniors/seniors, while the C-suite faces board demands for tangible results.
Also Read: AI may push more women out of workforce: Study
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Thank you for subscribing to Daily Top 5
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