Meridiano

Add Article

No Image Available

Article Details

Title

Article: PhonePe IPO freeze & its impact; Startup Mafia 3.0

Impact Score

- (Not Rated)

AI Summary (Processed Content)

Not Processed / Summarized Yet

Original URL

https://economictimes.indiatimes.com/tech/newsletters/morning-dispatch/phonepe-ipo-freeze-its-impact-startup-mafia-3-0/articleshow/129621772.cms

Source Feed

Tech-Economic Times

Published Date

2026-03-17 01:36

Fetched Date

2026-03-16 23:30

Processed Date

N/A

Embedding Status

Not Generated

Cluster ID

Not Clustered

Raw Extracted Content

PhonePe IPO freeze & its impact; Startup Mafia 3.0
Want this newsletter delivered to your inbox?
I agree to receive newsletters and marketing communications via e-mail
Thank you for subscribing to Morning Dispatch
We'll soon meet in your inbox.
Happy Tuesday! PhonePe has deferred its IPO, signalling a broader chill in startup listing plans. This and more in today’s ETtech Morning Dispatch.
Also in the letter:
■ MakeMyTrip eyes India listing
■ CodeRabbit founder interview
■ Blanket licence for AI
With PhonePe putting its IPO plans on hold, several other startups may also slow down their public market ambitions, industry insiders told us.
Driving the news: The Walmart-owned digital payments company, which had been preparing for a $1.3 billion public listing in India, said on Monday it will defer the listing until markets stabilise.
The development has triggered caution across the startup ecosystem, where several late-stage companies had been exploring listings.
Also Read: PhonePe IPO: Can the fintech giant convince markets it’s about more than payments?
Impact: Market participants (investors and bankers) we spoke to say that only a narrow set of companies are likely to push ahead with IPO plans in the current climate:
Broader story: The West Asia conflict and global market volatility have unsettled investor sentiment. Indian equities have turned choppy, foreign capital flows have weakened, and retail investors have become more cautious about high-risk listings.
Industry insiders say some companies may continue preparing for IPOs and seeking regulatory approvals, but will likely wait to launch once market conditions improve.
Also Read: Big burst of new-age startup IPOs lined up for 2026; issues worth Rs 50,000 crore planned
India’s high-growth startups are increasingly becoming founder factories, spawning a new generation of entrepreneurs building companies across emerging sectors.
The numbers: Executives from 111 startups founded between 2014 and 2025 have launched about 203 startups, according to Longhouse data analysed by us.
Startup mafia 3.0: These alumni networks represent the third wave of India’s “startup mafia”. The first generation was shaped by Flipkart and Paytm, followed by a second wave led by Oyo, Ola and Udaan alums.
What’s changed: Faster scaling, easier access to venture capital and liquidity through Esop payouts are pushing more startup employees to strike out on their own.
Emerging sectors: Many of these founders are building AI-native software, cross-border payments, gaming, and services for tier-II markets.
Online travel company MakeMyTrip is considering a local listing for its India business, a move that could allow domestic institutional and retail investors to participate in the company’s growth in its largest market.
What’s happening? The Nasdaq-listed firm said it has completed an internal restructuring to consolidate its key India brands under a single entity.
As part of this, RedBus India has been merged into MakeMyTrip (India) Private Limited, according to a regulatory filing.
The restructuring could pave the way for a future India listing, subject to market conditions and regulatory approvals.
Mohak Nahta, founder, Atlys
Atlys funding: Separately, MakeMyTrip joined the $36 million funding round of visa processing startup Atlys as a new investor.
Atlys plans to use the funds to expand internationally and strengthen its AI-driven visa processing tools, including document verification and traveller support.
Bhavish Aggarwal, CEO, Ola Electric
Ola Electric Mobility plans to raise around Rs 2,000 crore by selling a stake in its battery subsidiary Ola Cell Technologies.
The company has reportedly appointed Avendus Capital and Motilal Oswal to manage the fundraising. Talks are underway with sovereign wealth funds and global infrastructure investors.
CodeRabbit founder Harjot Gill
Code architecture, scope will stay in human hands in AI age: CodeRabbit founder | The rise of AI coding assistants has sparked fears that AI systems could eventually replace software engineers. However, CodeRabbit founder Harjot Gill believes the technology will augment developers.
Centre for blanket content licensing for AI training: The government has reiterated that artificial intelligence developers should receive a blanket licence to use lawfully accessed content for training models without individual negotiation, despite opposition from multiple industries.
■ Spies and subsidies: China joins Brazil’s $20 billion delivery app war (FT)
■ The Tesla influencers leaving the ‘cult’ (Wired)
■ Can Africa succeed where India failed with the $40 smartphone? (Rest of the World)
Also in the letter:
■ MakeMyTrip eyes India listing
■ CodeRabbit founder interview
■ Blanket licence for AI
PhonePe IPO delay signals valuation standoff for upcoming new-age listings
With PhonePe putting its IPO plans on hold, several other startups may also slow down their public market ambitions, industry insiders told us.
Driving the news: The Walmart-owned digital payments company, which had been preparing for a $1.3 billion public listing in India, said on Monday it will defer the listing until markets stabilise.
- The company cited macro uncertainty linked to the West Asia conflict.
- People familiar with the discussions said a valuation gap with bankers was another key factor.
- While PhonePe was targeting a $15 billion valuation, some bankers pegged it at closer to $7 billion, roughly in line with Paytm.
The development has triggered caution across the startup ecosystem, where several late-stage companies had been exploring listings.
Also Read: PhonePe IPO: Can the fintech giant convince markets it’s about more than payments?
Impact: Market participants (investors and bankers) we spoke to say that only a narrow set of companies are likely to push ahead with IPO plans in the current climate:
- Startups that urgently need private funding but cannot raise it at acceptable valuations.
- Companies willing to accept modest valuation cuts from institutional investors.
- Businesses with consistent profitability and predictable cash flows.
Broader story: The West Asia conflict and global market volatility have unsettled investor sentiment. Indian equities have turned choppy, foreign capital flows have weakened, and retail investors have become more cautious about high-risk listings.
Industry insiders say some companies may continue preparing for IPOs and seeking regulatory approvals, but will likely wait to launch once market conditions improve.
Also Read: Big burst of new-age startup IPOs lined up for 2026; issues worth Rs 50,000 crore planned
Startup Mafia 3.0: Razorpay, Cred, Meesho help spawn 200+ founders
India’s high-growth startups are increasingly becoming founder factories, spawning a new generation of entrepreneurs building companies across emerging sectors.
The numbers: Executives from 111 startups founded between 2014 and 2025 have launched about 203 startups, according to Longhouse data analysed by us.
- Payments firm Razorpay has produced the most founders (39).
- CRED follows with 38.
- Meesho has spawned 27, while PhonePe has produced 22.
Startup mafia 3.0: These alumni networks represent the third wave of India’s “startup mafia”. The first generation was shaped by Flipkart and Paytm, followed by a second wave led by Oyo, Ola and Udaan alums.
What’s changed: Faster scaling, easier access to venture capital and liquidity through Esop payouts are pushing more startup employees to strike out on their own.
Emerging sectors: Many of these founders are building AI-native software, cross-border payments, gaming, and services for tier-II markets.
MakeMyTrip eyes domestic listing after restructuring India business
Online travel company MakeMyTrip is considering a local listing for its India business, a move that could allow domestic institutional and retail investors to participate in the company’s growth in its largest market.
What’s happening? The Nasdaq-listed firm said it has completed an internal restructuring to consolidate its key India brands under a single entity.
As part of this, RedBus India has been merged into MakeMyTrip (India) Private Limited, according to a regulatory filing.
The restructuring could pave the way for a future India listing, subject to market conditions and regulatory approvals.
Mohak Nahta, founder, Atlys
Atlys funding: Separately, MakeMyTrip joined the $36 million funding round of visa processing startup Atlys as a new investor.
- Susquehanna Asia VC led the round.
- Existing investors Elevation Capital, Long Journey Ventures and Peak XV Partners also participated.
Atlys plans to use the funds to expand internationally and strengthen its AI-driven visa processing tools, including document verification and traveller support.
Ola Electric plans to raise Rs 2,000 crore via stake sale in Ola Cell Technologies
Bhavish Aggarwal, CEO, Ola Electric
Ola Electric Mobility plans to raise around Rs 2,000 crore by selling a stake in its battery subsidiary Ola Cell Technologies.
The company has reportedly appointed Avendus Capital and Motilal Oswal to manage the fundraising. Talks are underway with sovereign wealth funds and global infrastructure investors.
Other Top Stories By Our Reporters
CodeRabbit founder Harjot Gill
Code architecture, scope will stay in human hands in AI age: CodeRabbit founder | The rise of AI coding assistants has sparked fears that AI systems could eventually replace software engineers. However, CodeRabbit founder Harjot Gill believes the technology will augment developers.
Centre for blanket content licensing for AI training: The government has reiterated that artificial intelligence developers should receive a blanket licence to use lawfully accessed content for training models without individual negotiation, despite opposition from multiple industries.
Global Picks We Are Reading
■ Spies and subsidies: China joins Brazil’s $20 billion delivery app war (FT)
■ The Tesla influencers leaving the ‘cult’ (Wired)
■ Can Africa succeed where India failed with the $40 smartphone? (Rest of the World)
Want this newsletter delivered to your inbox?
I agree to receive newsletters and marketing communications via e-mail
Thank you for subscribing to Morning Dispatch
We'll soon meet in your inbox.