PhonePe already controls roughly 46% of India’s UPI transactions, while Google Pay has about a third. Together, they process close to four out of every five UPI payments. That is striking because the payment rail underneath is the same for everyone. PhonePe, Google Pay, Paytm, Navi and super.money all sit on top of UPI.
PhonePe’s lead was built elsewhere. It spent years putting QR codes on shop counters, building a field-sales network and making its purple logo familiar enough that millions of people now open the app without thinking much about it. PhonePe says it has more than 720 million registered users and over 50 million merchants.
UPI made the infrastructure common, but it did not make the customer relationship common. Switching apps takes seconds, yet habits are harder to move. That is why cashback from super.money or Navi does not automatically take users away from PhonePe and Google Pay.
The UAE is a useful test of whether PhonePe can repeat that advantage outside India.
PhonePe already allowed Indian users to pay selected UAE merchants through UPI. The new approval is different. It has received in-principle approval from the Central Bank of the UAE for retail payments, card schemes and stored-value facilities. Final approval is still pending, but PhonePe is clearly trying to become a local payments company rather than an Indian app that happens to work abroad.
The easiest starting point is the Indian community. Around 4.3 million Indians live in the UAE. Many already know the brand, and a large number have financial ties to India. That gives PhonePe a customer base most foreign entrants would have to spend heavily to build.
Remittances may matter even more. The UAE accounts for roughly one-fifth of India’s inward remittances. A worker in Dubai could eventually use PhonePe locally, send money home and have the recipient receive it into an Indian bank account already linked to PhonePe. That gives PhonePe a chance to sit on both sides of the corridor.
The problem is that the UAE is not waiting for another payments app. Aani already claims more than 12.5 million registered users, e& money has more than 2 million customers, and Careem Pay is already active in remittances. Banks and exchange houses are deeply established.
PhonePe may therefore work better first as an India-UAE financial bridge than as a general UAE wallet.
Its broader strategy also looks increasingly rail-agnostic. In India it uses UPI. In the UAE it can work with Aani and Jaywan. Its Visa partnership covers several international markets. PhonePe appears less interested in exporting UPI than in making sure the customer opens PhonePe first, whatever rail sits underneath.
Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.
“Le Deke Matter Settle Karte Hai”: Zetwerk, Ayr Energy Settle Legal Dispute
Zetwerk and Ayr Energy have settled their year-long legal battle, dropping pending claims in the US and India.
They will also jointly seek to end the USITC probe, clearing the way for Zetwerk’s public-market debut.
Read more here
“Ruko Zara Sabr Karo”: ED Chargesheets Nishant Pitti
The ED has chargesheeted EaseMyTrip cofounder Nishant Pitti in the Mahadev betting-linked money laundering case.
The agency alleges he routed betting proceeds into Indian stocks through FPIs and has attached shares worth ₹59.6 Cr.
Read more here
“Humari Bhi Haan Hai”: PhonePe Secures Nod For UAE Payments Business
PhonePe has received in-principle approval for two UAE payment licences.
The move could make the UAE its first overseas market for domestic payments.
Read more here
“Galti Ho Gayi Humse”: Google Agrees To Report Child Abuse Content
Google has agreed to report child abuse content to Indian law enforcement agencies.
The move comes as the government pushes platforms to strengthen online child-safety measures.
Read more here
“Kuch Kar Dikhane Ka Junoon”: Snapdeal Sets ₹30-₹32 Price Band
Snapdeal parent AceVector has set a ₹30-₹32 price band for its ₹420 Cr IPO, valuing it at ₹1,741 Cr.
It marks the company’s second attempt to go public after shelving its 2022 IPO plan.
Read more here
“Sapne Dekhe Bade Bade”: CarDekho Parent To Convert Into Public Company
CarDekho parent Girnar Software is converting into a public company ahead of its IPO.
The board has approved dropping “Private” from its name, a typical pre-listing step.
Read more here
“Karma Karo Partha Karma Karo”: Simplilearn Partners With Karmayogi Bharat
Simplilearn has partnered with Karmayogi Bharat to offer AI and digital upskilling programs to public sector professionals.
The courses will be hosted on the iGOT Karmayogi platform.
Read more here
“Daro Mat Idhar Toh Aao”: Lxme Partners With Shiprocket
Lxme has partnered with Shiprocket to expand Lxme UPI across India’s D2C ecosystem.
Eligible transactions can also earn customers Digital Gold.
Read more here
“Din Dugni Raat Chauguni”: MyBranch Expands South India Workspace Network
Flexible workspace provider MyBranch has expanded its South India footprint to 50,000 sq ft.
It now operates 16 centres across 14 cities.
Read more here
“Aa Dekhe Zara”: Atom Risk Advisory Secures Global Insurance Broking Licence
Atom Risk Advisory’s group entity has secured a global insurance broking licence.
The move will enable the company to offer cross-border insurance solutions.
Read more here
“I’m The Best”: TalentGum Receives STEM.org Accreditation
TalentGum has received STEM.org accreditation for its educational experience.
The platform was also named among the top 5% of “Best in STEM” brands.
Read more here
“Saathi Haath Badhana”: Fynd Partners Vision Express India
Fynd has partnered with Vision Express India to bring 3D virtual eyewear try-ons to its website.
The GlamAR solution covers over 1,000 eyewear models.
Read more here
“Kuch Daring Karna Hai”: Stratbeans Expands AI-Led Workforce Learning Solutions
Stratbeans is helping manufacturers use AI for workforce training and knowledge support.
Its Ask AI platform provides answers from approved company documents.
Read more here
“Ye Gen-Z Wala Cockroach Toh Nahi”: Matters.AI and Cockroach Labs Integrate
Matters.AI and Cockroach Labs have integrated to identify sensitive data in CockroachDB.
The solution also maps data access to users, roles and privileges.
Read more here
“Aaiye Aapka Intezaar Tha”: Olyv Apoints Ravi Sharma As CFO
Olyv has appointed Ravi Sharma as its CFO as it enters a new growth phase.
Sharma brings 17+ years of financial services experience.
Read more here
“Jungle Mein Mangal”: Ubalance Naturals Unveils New Identity
Ubalance Naturals has launched a new brand identity, ‘The Forest Within’, across its portfolio.
The Ayurvedic wellness company aims to reach ₹100 Cr in revenue by FY30.
Read more here
“Purana Saal Naya Maal”: QNu Labs Launches QShield 2.0
QNu Labs has launched QShield 2.0 to help organisations assess cryptographic assets for post-quantum security.
The platform covers quantum readiness, PKI, vaults and AI security.
Read more here
“Hume Tum Par Naaz Hai”: Integra Robotics Secures Indian Patent
Integra Robotics has secured an Indian patent for remotely controlling robots through VR.
The technology translates human movements into robotic commands using gesture gloves and depth cameras.
Read more here
Protein Pantry has raised ₹9 Cr in a seed round led by Sharrp Ventures.
Read more here
Fintech and brokerage startup Definedge has raised ₹22 Cr in a pre-Series A round. The funding takes its total capital raised to ₹30 Cr.
Read more here
AI startup Demoverse has raised $600K in pre-seed funding led by Lumikai. The round also saw participation from Marlan and angel investors.
Read more here
Lavni Ventures has closed its second deep-tech impact fund at ₹200 Cr.
Read more here
Startup intelligence platform YNOS has raised ₹2.12 Cr from Gyan Circle Ventures.
Read more here
TimBuckDo has raised an undisclosed bridge round from Trasa Ventures and Adarsh Narahari.
Read more here
Masters’ Union Ventures’ first Demo Day saw 25 student startups secure nearly ₹60 Cr in soft funding commitments. Over 65 VCs and angel investors participated.
Read more here
