PhonePe leads nearly half of India's UPI transactions, but as it gears up for a $1.3 billion IPO, a tough question looms: can a company built to defend its lead ever learn to make real profit?

In this episode, Rohin Dharmakumar argues that PhonePe's dominance might actually be a strategic trap. With zero-margin transactions and shifting regulations, the next ten years cannot look like the last. To win, PhonePe must decide whether it's willing to risk its crown to become a bold market creator. Will it evolve into an aggressive disruptor like Zomato, or remain a safe, boring utility like PayPal?

Joining co-hosts Rohin Dharmakumar and Praveen Gopal Krishnan is Arundhati Ramanathan, Deputy Editor at The Ken and resident fintech expert. Arundhati recently published a story on January 26 titled 'Should PhonePe be worth more than Paytm's $7.9B?' which dives deep into the company's valuation puzzle. We also introduce a new voice to the 2x2 team: Rahel Philipose joins as our third co-host to help unravel the cultural and strategic shifts required for PhonePe's survival.

This episode of Two by Two was produced by Uddantika Kashyap mixed and mastered by Rajiv CN, our resident sound engineer.

If you liked this episode, please share it with your friends and colleagues. And if you have thoughts on the discussion, write to us at [email protected].

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Additional resources:

- Platform ambitions: The story of how Ispirit lost its true north by Rohin Dharmakumar
- The unlikely story of BHIM, the upsetter of plans by Arundhati Ramanathan
- Naryana Health's Viren Shetty on learning 'how much insurance is about selling and how little about health' by Seema Singh
- Two by Two episode 1: Will Flipkart become Phonepe before Phonepe becomes flipkart?

🚨The Ken's Zero Shot podcast is hosting a live event! This is a speculative yet realistic discussion built around one premise: what happens when AI agents take off in India? How will they rewire existing habits, business models and profit pools? Since nobody knows for sure, we won't pretend to have all the answers. Instead we are going to break the narrative. Click here for details.