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Blog5 Feb 2026

Solar Meets Hydrogen: Insolare & Versogens Partner Up

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Blog3 Feb 2026

SBI General Insurance: What the 9MFY26 Numbers Really Tell Us

SBI General Insurance operates on a straightforward model—collect premiums, pay claims over time, and invest the interim funds. A closer look at 9MFY26 vs 9MFY25 highlights where the pressure is building. <h2>A. Insurance Business: Growth Continues, Margins Under Pressure</h2> <img src="https://unlistedzone.com/storage/knowledge-logo/app_image-1770112524.jpg" alt="" width="50%" /> Premium earned increased from about ₹6,451 crore in 9MFY25 to ₹7,135 crore in 9MFY26, indicating steady expansion. However, claims rose almost in tandem (₹5,436 crore to ₹5,601 crore), limiting operating leverage. Cost pressures intensified. Commissions jumped sharply from ~₹615 crore to ~₹1,018 crore, pointing to higher distribution intensity. Operating expenses also moved up from ~₹1,038 crore to ~₹1,191 crore. As a result, operating profit from the insurance business improved only modestly, rising from ~₹154 crore to ~₹406 crore. Growth is visible, but it is increasingly cost-heavy. <h2>B. Investment Business: Supportive, but Less Predictable</h2> <img src="https://unlistedzone.com/storage/knowledge-logo/app_image-1770112552.jpg" alt="" width="50%" /> The investment book continued to support earnings. Interest income remained stable, reflecting a steady fixed-income portfolio. However, profit on sale of investments declined (from ~₹577 crore to ~₹368 crore), while losses on sale/redemption stayed elevated, underscoring market volatility. Interest-related expenses also increased, reducing the net contribution from investments. Despite this, the investment business remained profitable, though below last year—reinforcing that investment income helps, but cannot be relied upon consistently. <h2>C. Putting It All Together: Total Operating Performance</h2> <img src="https://unlistedzone.com/storage/knowledge-logo/app_image-1770112578.jpg" alt="" width="50%" /> Viewed together, the insurance and investment businesses show only incremental improvement in total operating profit, despite premium growth and supportive investment income. Net profit remained broadly flat, indicating that incremental growth is not translating proportionately into bottom-line gains. <h2>D. Key Takeaways for Investors</h2> • Growth is intact, but increasingly expensive to sustain. • Claims and commissions are absorbing much of the premium expansion, keeping underwriting margins tight. • Investment income remains important, but volatility and higher interest costs dilute its cushioning effect. Going forward, outcomes will hinge on claims discipline, commission control, and capital management, not just headline premium growth.

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Blog2 Feb 2026

Hero FinCorp’s 9M FY26 Numbers: Strong Core, Profitability Still Catching Up

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Blog31 Jan 2026

After Delivering 10x Returns in the Unlisted Market Over the Last 7-8 Years, NSE is Ready for Its IPO!

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Blog29 Jan 2026

Madhur Iron & Steel (India) Ltd: An Unlisted Steel Story Riding India’s Infra Boom

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Blog29 Jan 2026

IPL Teams Are Suddenly Worth Billions — Here’s What’s Driving the Frenzy

If you thought IPL teams were just cricket businesses, think again. Behind the on-field action, a quiet bidding war is heating up — and valuations are touching $1–2 billion per franchise. Let’s break down what’s happening,UnlistedZone-style 👇 <h2>A) The Trigger: Rajasthan Royals’ $1.3 Billion Offer</h2> According to a Bloomberg report, the owners of Rajasthan Royals (RR) have received a preliminary offer of $1.3 billion (~₹11,956 crore) for the franchise — even before the IPL season begins. Key details: <ul data-spread="false"> <li> The bid comes from a consortium led by Kal Somani, an existing investor </li> <li> RR’s sale process is being managed by Raine Group </li> <li> A valuation floor of ~$1.1 billion has already been set </li> </ul> This isn’t a distressed sale. It’s a price discovery exercise — and it’s telling us something bigger. <h2>B) It’s Not Just RR — Every Big Team Is in Play</h2> Market chatter suggests multiple IPL franchises are being evaluated or quietly shopped: <img src="https://unlistedzone.com/storage/knowledge-logo/app_image-1769673531.jpg" alt="" width="50%" /> In short: IPL teams are now billion-dollar assets, not sports clubs. <h2>C) Why Are Investors Willing to Pay So Much?</h2> At first glance, it looks crazy. The IPL lasts just 8 weeks a year.  <h3>1️⃣ Media Rights = Annuity Income</h3> <ul data-spread="false"> <li> IPL media rights are locked in for years </li> <li> Revenue is shared across franchises </li> <li> Growth in digital + global viewership keeps pushing payouts higher </li> </ul> Think of this like owning a toll road — not a one-time event. <h3>2️⃣ Global Expansion Optionality</h3> <ul data-spread="false"> <li> IPL teams are turning into global cricket brands </li> <li> Overseas leagues, digital content, licensing, merchandising </li> <li> Similar to how NFL / NBA teams became media-IP machines </li> </ul> <h3>3️⃣ Scarcity Value</h3> <ul data-spread="false"> <li> Only 10 IPL teams exist </li> <li> No easy way to create new franchises </li> <li> Demand from PE funds, family offices, and strategic media players is rising </li> </ul> Scarcity + cash flows = valuation explosion. <h2>D) Why Are Existing Investors Selling Then?</h2> Because early investors are sitting on massive multiples. Example: <ul data-spread="false"> <li> CVC Capital Partners sold Gujarat Titans at ~$800 million </li> <li> Times Internet, RedBird Capital, and others are exploring partial exits </li> </ul> For PE funds, this is textbook: <blockquote> Buy early → scale asset → exit when valuations peak </blockquote> <h2>E) But Are These Valuations Risk-Free?</h2> Not exactly. Key risks investors are watching: <ul data-spread="false"> <li> Dependency on BCCI & IPL governance </li> <li> Regulatory scrutiny on sponsorships (RMG, fantasy, betting adjacencies) </li> <li> Future media-rights growth may normalize </li> </ul> Still, for long-term capital, IPL franchises look more like infrastructure than entertainment. <h2>The Big Takeaway</h2> The IPL has quietly crossed a tipping point. It’s no longer about who wins trophies. It’s about who owns the most valuable sports IP in India. And if these deals go through, don’t be surprised if: <ul data-spread="false"> <li> IPL teams start listing </li> <li> Minority stake sales become common </li> <li> Valuations push even higher in the next rights cycle </li> </ul> Cricket may be seasonal — But IPL money is permanent.

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Blog29 Jan 2026

Lord’s Mark Industries is laying out a clear growth blueprint anchored around healthcare and clean energy.

Lord’s Mark has outlined a multi‑state investment roadmap focused on building long‑term platforms across healthcare infrastructure, medical devices manufacturing, renewable energy, and emerging clean‑energy technologies. And this isn’t incremental expansion. The roadmap involves planned investments of ₹2,700+ crore, spanning healthcare delivery, diagnostics, green hydrogen, solar rooftop systems, and energy storage. Let’s break it down, UnlistedZone style. <h2>A) The Big Picture First</h2> Lord’s Mark Industries is positioning itself as a diversified infrastructure and manufacturing platform, aligned with two of India’s biggest national priorities: • Affordable healthcare • Clean & renewable energy The strategy is simple: <blockquote> Build scalable, long-duration projects → partner with state governments → create annuity-like revenues. </blockquote> Now let’s see how this plays out state by state. <h2>B) Maharashtra: Healthcare + Manufacturing Engine</h2> MoU Status: Signed with the Government of Maharashtra <h3>1️⃣ Affordable Medical & Healthcare Infrastructure</h3> • Investment: ₹150 crore • Start: May 2026 • Execution period: 3–4 years • Estimated annual revenue: ~₹500 crore This project focuses on building affordable healthcare assets — a space where demand is structural and long-term. <h3>2️⃣ Medical Devices Manufacturing (Mahape & Nagpur)</h3> • Investment: ₹75 crore • Start: September 2026 • Execution period: 2 years • Estimated annual revenue: ~₹300 crore This plugs directly into India’s medical manufacturing push and import substitution theme. 👉 Total Maharashtra investment: ₹225 crore <h2>C) Uttar Pradesh: The Clean Energy Powerhouse</h2> MoU Status: Signed with the Government of Uttar Pradesh This is where the big capital deployment happens. <h3>1️⃣ Green Hydrogen Project</h3> • Investment: ₹1,000 crore • Start: December 2026 • Duration: 3 years • Structure: Joint Venture Green hydrogen is still early-stage, but policy-backed and capital intensive — exactly the kind of project suited for long-term players. <h3>2️⃣ Solar Rooftop + Battery Energy Storage Systems (BESS)</h3> • Investment: ₹1,000 crore • Start: September 2026 • Duration: 3 years • Structure: Joint Venture This addresses both renewable generation and grid stability — a critical bottleneck in India’s energy transition. <h3>3️⃣ Affordable Diagnostics (PPP Model)</h3> • Investment: ₹300 crore • Start: July 2026 • Duration: 2 years Public–private partnership reduces demand risk while ensuring scale. 👉 Total UP investment: ₹2,300 crore Expected annual revenue (post-stabilisation): ₹700–800 crore <h2>D) Kerala: Optional Upside in Healthcare</h2> Status: Non-binding Expression of Interest (EOI) • Sector: Medical & Healthcare • Investment: ~₹100 crore • Start: July 2026 • Duration: 2 years • Estimated annual revenue: ~₹200 crore This remains exploratory but signals expansion beyond core states. <h2>E) Assam: Early-Stage Discussions</h2> Status: Advanced discussions with Government of Assam • Project: Medical Infrastructure • Investment: Under evaluation • Estimated annual revenue: ~₹200 crore Still early, but adds to the healthcare-led expansion theme. <h2>F) What Does This Mean Strategically?</h2> If executed well, this roadmap: • Diversifies Lord’s Mark beyond a single sector • Builds long-gestation, annuity-style assets • Aligns with government-backed sectors • Creates 2,000+ direct and indirect jobs across states In short — higher visibility, lower cyclicality. <h2>G) How Will All This Be Funded?</h2> The company plans a phased capital deployment, using a mix of: • Internal accruals • Selective equity infusion (including possible rights issue) • Project-linked debt • Global FDI participation Management has emphasized maintaining balance sheet strength while scaling. Project completion timelines are largely 2–3 years, keeping execution risk contained. <h2>H) Management Speaks</h2> According to Managing Director Mr. Sachidanand Upadhyay: <blockquote> “Our engagements at Davos reflect a focused approach to building scalable platforms in clean energy and healthcare. These initiatives strengthen our long-term growth visibility while contributing meaningfully to employment generation and regional infrastructure development.” </blockquote> <h2>G) The Fine Print</h2> Revenue projections remain subject to project completion schedules and government policy frameworks — a standard caveat for infrastructure-led growth stories. <h2>Bottom Line</h2> Lord’s Mark Industries isn’t just announcing MoUs. It’s outlining a clear capital allocation story: • Big bets • Policy-aligned sectors • Long-duration revenues Now the real test begins — execution. And that’s what markets will be watching next.

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Blog28 Jan 2026

Juspay just became a unicorn. But this isn’t a hype story.

Juspay just became a unicorn. But this isn’t a hype story. If you’ve ever paid for a flight on IndiGo, ordered food on Swiggy, or checked out on Amazon, chances are Juspay worked silently in the background. And now, that silent player has crossed a big milestone. This week, Juspay raised $50 million from WestBridge Capital, pushing its valuation to $1.2 billion—officially making it India’s first unicorn of 2026. But the real story isn’t the valuation. It’s why investors are backing a payments company that doesn’t chase flashy consumer branding. <h2>A) First, what exactly does Juspay do?</h2> Founded in 2012, Bengaluru-based Juspay builds core payments infrastructure for enterprises and banks. Think of it as the plumbing behind digital payments: <ul data-spread="false"> <li> Payment orchestration </li> <li> High-reliability checkout systems </li> <li> Infrastructure that banks and large merchants plug into </li> </ul> Today, Juspay: <ul data-spread="false"> <li> Processes 300+ million transactions daily </li> <li> Handles $1 trillion+ in annualised payment volume </li> <li> Powers payments for Amazon, Flipkart, Google, IndiGo, Swiggy, HSBC, Zepto, and more </li> </ul> No flashy app. No cashback wars. Just scale, reliability, and deep integration. <h2>B) The funding snapshot</h2> Here’s what the latest round looks like: <ul data-spread="false"> <li> Amount raised: $50 million </li> <li> Investor: WestBridge Capital (sole participant) </li> <li> Valuation: $1.2 billion </li> <li> Structure: Mix of <ul data-spread="false"> <li> Primary capital (new money into the business) </li> <li> Secondary sale (liquidity for early investors & ESOP holders) </li> </ul> </li> </ul> Importantly, this is Juspay’s second liquidity event in just one year—a rare move in Indian startups. For context: <ul data-spread="false"> <li> In April 2025, Juspay raised $60 million at a ~$900 million valuation </li> <li> That round was led by Kedaara Capital, with SoftBank and Accel participating </li> </ul> <h2>C) The numbers that changed the narrative</h2> For years, payments infrastructure was seen as: <blockquote> “Great scale, weak profitability.” </blockquote> Juspay just flipped that script. <h3>FY25 performance:</h3> <ul data-spread="false"> <li> Revenue: ₹514 crore (+61% YoY) </li> <li> PAT: ₹62 crore </li> <li> PBT: ₹27 crore </li> <li> FY24 comparison: ₹97 crore loss </li> </ul> In short: 👉 Juspay is profitable at scale. That’s rare in fintech. And extremely attractive to long-term investors. <h2>D) Where will the money go?</h2> The fresh capital will be used to: <ol start="1" data-spread="true"> <li> Expand globally Juspay plans to deepen presence across: <ul data-spread="false"> <li> Asia-Pacific </li> <li> Middle East </li> <li> Latin America </li> <li> Europe & the UK </li> <li> North America </li> </ul> </li> <li> Strengthen core infrastructure Focus on: <ul data-spread="false"> <li> Open, modular, interoperable payment systems </li> <li> Bank-grade reliability for large enterprises </li> </ul> </li> <li> Invest in AI Not for buzzwords—but to: <ul data-spread="false"> <li> Improve merchant success rates </li> <li> Enhance internal productivity </li> <li> Reduce payment failures at scale </li> </ul> </li> </ol> <h2>E) Why did WestBridge invest?</h2> WestBridge’s thesis is simple: Juspay is no longer just a payment orchestrator. It’s becoming core payments infrastructure for banks and enterprises. As WestBridge put it: <blockquote> Juspay has evolved into a full-stack, scalable payments platform while maintaining sustainable growth. </blockquote> In a world where digital payments are exploding, infrastructure—not apps—becomes the moat. <h2>F) The bigger picture</h2> Juspay’s unicorn moment says a lot about where Indian fintech is heading: <ul data-spread="false"> <li> Less focus on consumer cashburn </li> <li> More focus on infrastructure and reliability </li> <li> Profitability matters again </li> <li> Global ambition from day one </li> </ul> Juspay didn’t win by being loud. It won by becoming mission-critical. And in fintech, that’s the strongest position you can hold. Bottom line: Juspay’s $1.2B valuation isn’t about hype—it’s about scale, profits, and invisible dominance. And that’s exactly why investors are paying attention.

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Blog28 Jan 2026

Razorpay: The Payments Pipe Powering India’s Internet Economy

In today’s UnlistedZone-style deep dive: We break down Razorpay—what it does, how it makes money, why it flipped back to India, and what its IPO path tells us about the future of Indian fintech. <h3>The Big Picture</h3> On most days, Razorpay isn’t something consumers see. It’s the invisible plumbing behind India’s internet economy—processing UPI scans at kirana stores, card payments on D2C websites, subscription renewals for SaaS firms, and salary payouts for startups. And that invisibility is precisely its edge. Founded in 2014, Razorpay has quietly grown into one of India’s most critical B2B fintech infrastructure platforms—the payments layer that businesses plug into so money can move seamlessly. <h3>How It All Started</h3> Razorpay was born out of frustration. Back in 2014, Harshil Mathur and Shashank Kumar—IIT Roorkee alumni—ran into the same problem many early Indian startups faced: accepting online payments was painful. Legacy bank gateways were slow, documentation-heavy, and unreliable. So they decided to fix it. They built a developer-friendly payments gateway, got into Y Combinator, and became one of the earliest Indian fintech startups to scale with a global startup mindset but local execution. Fast forward to today, Razorpay is headquartered in Bengaluru, employs 4,000+ people, and supports businesses across India—from bootstrapped SMEs to unicorns. <h3>What Razorpay Actually Sells</h3> At its core, Razorpay is no longer just a payment gateway. It’s a full-stack merchant fintech platform. Here’s how the product stack breaks down: 1. Payments Infrastructure UPI, cards, net banking, wallets, international payments, QR codes, and POS—basically every way a business can accept money. 2. RazorpayX (Business Banking & Payouts) Current accounts, automated payouts, payroll, vendor payments, tax payments, and corporate cards. 3. Razorpay Capital (Lending) Working capital loans, instant settlements, and credit lines—powered via partner banks and NBFCs. 4. Value-Added Tools Subscriptions, invoicing, fraud detection, payment optimisation, escrow, loyalty tools, and analytics. The strategy is clear: own the merchant’s money flow end-to-end. <h3>How Razorpay Makes Money</h3> Razorpay’s revenue engine runs on four levers: • Transaction fees on payments (MDR-style take rates) • SaaS fees for banking, payouts, subscriptions, and automation tools • Revenue share from lending products under Razorpay Capital • Hardware & service fees from POS devices and offline solutions As merchants adopt more products, switching costs rise—and Razorpay’s wallet share expands. <h3>The Market Opportunity</h3> India’s digital payments market is massive—and still growing. • Annual payment volumes: $3–4 trillion • UPI transactions: 12+ billion per month • Structural tailwinds: e-commerce growth, MSME formalisation, and UPI-first behaviour But payments are just the entry point. When you add business banking, payouts, lending, compliance, and analytics, the total merchant fintech opportunity balloons to ₹25–30 lakh crore. That’s the real prize Razorpay is chasing. <h3>Competitive Landscape</h3> Razorpay operates in a brutally competitive arena: • PayU & Cashfree (payment gateways) • Paytm & PhonePe (merchant payments + ecosystems) • Stripe (cross-border payments) • Bank-led gateways Yet Razorpay holds its ground thanks to: • Early and deep UPI merchant adoption • Strong developer APIs • High payment success rates • Broad, integrated product suite • High customer stickiness through multi-product usage In fintech, distribution + integration = defensibility. <h3>Scale Check (FY25)</h3> The numbers underline Razorpay’s footprint: • 12+ million merchants onboarded • $210 billion TPV processed • 7.4 billion transactions annually • Strong presence in Tier-2 and Tier-3 cities • Growing contribution from POS, banking, lending, and international payments This isn’t a niche startup anymore—it’s infrastructure. <h3>Financial Performance Snapshot (FY 24 vs FY25)</h3> <img src="https://unlistedzone.com/storage/knowledge-logo/app_image-1769586451.jpg" alt="" width="50%" /> • Revenue: ₹3,783 crore (↑ 65% YoY) • Gross Profit: ₹1,277 crore • Gross Margin: 33.8% (down from 39.4% in FY24) • PAT: (₹1,206 crore) loss One key shift stands out: Sales of prepaid cards and POS devices jumped to ₹442 crore, becoming ~12% of total revenue—virtually negligible the year before. Growth is strong. Profitability is still a work in progress. <h3>The Reverse Flip: Why It Mattered</h3> In May 2025, Razorpay completed its long-awaited reverse flip—moving its parent entity from Delaware (US) back to India. • Process started: May 2023 • Completed: May 2025 • Tax cost: ~₹1,200 crore • Converted to a Public Limited Company This wasn’t cosmetic. It aligns Razorpay with RBI regulations, improves credibility with Indian investors, and unlocks the path to a domestic IPO. <h3>IPO Watch</h3> Razorpay has officially entered IPO mode. • Inviting banker pitches • Targeting ~₹4,500 crore fresh issue • Likely listing window: Late 2026 With India’s tech IPO pipeline reopening, Razorpay wants to be among the flagship fintech listings. <h3>Valuation Trajectory</h3> • 2020: $1 billion (Unicorn) • 2021: $7.5 billion (Series F) • 2025: $9.2 billion That’s a 9x jump in five years, backed by Peak XV, Tiger Global, and GIC. <h3>The Bull Case</h3> • Market leader in a structurally growing ecosystem • Rapid diversification beyond payments • Strong founder-led execution • IPO-ready corporate structure • Deep merchant integration and stickiness <h3>The Watch-outs</h3> • Losses remain elevated post-ESOPs • Margins under pressure due to competition and UPI economics • Crowded fintech IPO pipeline (PhonePe, Paytm ecosystem players) • Execution risk as it balances growth with profitability <h3>Bottom Line</h3> Razorpay isn’t trying to be a flashy consumer app. It’s aiming to be India’s financial operating system for businesses. If it can convert scale into sustainable profitability, Razorpay’s IPO could mark a defining moment—not just for the company, but for India’s next phase of fintech infrastructure. Sometimes, the most powerful businesses are the ones you don’t notice—until everything depends on them.

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Blog27 Jan 2026

OfBusiness: The Quiet B2B Giant Powering India’s SME Supply Chain

If you’ve ever wondered how thousands of Indian SMEs manage raw material sourcing and working capital without running pillar to post, chances are OfBusiness is working behind the scenes. Founded in 2015, Gurugram-based OfBusiness (OFB Tech Pvt. Ltd.) sits at a rare intersection—commerce + credit. And as it gears up for a potential IPO, its numbers tell a story worth unpacking. <h2>A) What exactly does OfBusiness do?</h2> At its core, OfBusiness is a tech-enabled B2B commerce platform for SMEs in infrastructure, manufacturing, construction, and agriculture. But that’s just the surface. It operates through three tightly linked verticals: <h3>i) Raw Material Procurement</h3> OfBusiness bulk-buys essentials like: <ul data-spread="false"> <li> Steel (ferrous & non-ferrous) </li> <li> Chemicals and petroleum products </li> <li> Cement </li> <li> Agri and food products </li> </ul> It then supplies these directly to SMEs—cutting out inefficiencies, reducing costs, and solving logistics headaches. <h3>ii) Embedded Financing (via Oxyzo)</h3> Here’s the secret sauce. Through its NBFC arm Oxyzo, OfBusiness offers collateral-free working capital loans, tightly linked to purchase transactions on the platform. <ul data-spread="false"> <li> Underwriting is data-driven </li> <li> Risk is assessed using transaction history and cash flows </li> <li> Credit is fast, contextual, and scalable </li> </ul> Oxyzo became a standalone unicorn in 2022, validating this model. <h3>iii) SaaS & Tendering (BidAssist)</h3> BidAssist helps SMEs: <ul data-spread="false"> <li> Discover government and private tenders </li> <li> Manage compliance and documentation </li> <li> Improve win rates using analytics </li> </ul> This adds a high-margin SaaS layer to the business. <h2>B) How does it make money?</h2> OfBusiness doesn’t rely on a single revenue engine: <ul data-spread="false"> <li> Commerce margins on bulk-sourced materials </li> <li> Interest income from working capital loans </li> <li> SaaS subscriptions via BidAssist </li> <li> Commissions from OEMs and large manufacturers </li> </ul> This diversification is crucial—and it shows up clearly in the financials. <h2>C) Revenue mix: What’s driving growth?</h2> FY25 Total Revenue: ₹22,241 crore (up 15% YoY vs FY24) Key contributors: <ul data-spread="false"> <li> Ferrous materials: ₹8,556 crore (vs ₹7,354 crore in FY24) </li> <li> Non-ferrous: ₹4,543 crore (vs ₹3,707 crore) </li> <li> Chemicals & petroleum: ₹2,592 crore (vs ₹1,561 crore) </li> <li> Agriculture & food: ₹2,495 crore (vs ₹3,427 crore) </li> <li> Interest income: ₹1,117 crore (vs ₹816 crore) </li> </ul> While some categories like apparel declined, core industrial segments and financing income continued to scale steadily. <h2>D) Financial performance at a glance</h2> <h3>Revenue & profitability</h3> <img src="https://unlistedzone.com/storage/knowledge-logo/app_image-1769509331.jpg" alt="" width="50%" /> Key takeaway: Margins expanded meaningfully post-FY23 and then stabilized—suggesting operational maturity rather than hyper-growth at any cost. <h2>Balance sheet snapshot</h2> <img src="https://unlistedzone.com/storage/knowledge-logo/app_image-1769509415.jpg" alt="" width="50%" /> Borrowings have risen alongside scale—typical for a commerce-plus-credit model—but equity growth has kept pace, maintaining balance sheet strength. <h2>Cash flow reality check</h2> <img src="https://unlistedzone.com/storage/knowledge-logo/app_image-1769509393.jpg" alt="" width="50%" /> Operating cash flows are still negative, though improving materially. Net cash turned positive in FY25, and cash in hand rose sharply—signalling improving working capital discipline. <h2>Investors, valuation & IPO buzz</h2> <ul data-spread="false"> <li> Backed by SoftBank Vision Fund, Tiger Global, Matrix, Norwest </li> <li> Raised $800+ million </li> <li> Last valuation: ~$5 billion </li> <li> IPO timeline: Tentatively FY26 </li> </ul> The listing is expected to unlock value from both the commerce engine and the fintech arm (Oxyzo). <h2>The UnlistedZone take</h2> OfBusiness isn’t flashy. It doesn’t sell to consumers. But it quietly powers India’s industrial backbone. By solving two of the biggest SME pain points—procurement and credit—on a single platform, it has built strong moats, data advantages, and a scalable profit engine. Sometimes, the biggest stories aren’t on the front page. They’re buried deep in the supply chain.

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Blog27 Jan 2026

Inside PhonePe’s Revenue Engine: A Pause on Rent & RMG — And Why It’s Fixable

Some people believe PhonePe could be affected by the RBI’s tighter stance on certain payment flows—especially recurring and higher-risk categories like rent payments and Real Money Gaming (RMG). At first glance, the concern sounds reasonable. Payments are, after all, the backbone of PhonePe’s business. But look a little deeper and this doesn’t resemble a structural crack. It looks more like a temporary regulatory pause—one that can be corrected with clearer rules. To see why, we need to start with how PhonePe actually earns its money, and where regulators chose to step in. Let’s break it down. <h2>A) PhonePe’s ₹7,115 Cr Revenue Stack (FY25)</h2> PhonePe reported ₹7,115 crore in total operating revenue in FY25. Here’s how it breaks up: <img src="https://unlistedzone.com/storage/knowledge-logo/app_image-1769496794.jpg" alt="" width="50%" /> Nearly 90% of PhonePe’s revenue comes from payment services. So if regulation tightens here, the impact naturally looks amplified. But payment services weren’t a single, uniform stream. <h2>B) The Hidden Concentration Inside Payments</h2> Within payment services, two categories carried outsized weight: <ul data-spread="false"> <li> Rent & related payments </li> <li> Real Money Gaming (RMG) </li> </ul> <h3>Payment Revenue – Sub-Split (FY25)</h3> <img src="https://unlistedzone.com/storage/knowledge-logo/app_image-1769496826.jpg" alt="" width="50%" /> Put simply: <ul data-spread="false"> <li> Rent alone contributed ~₹1,260 crore </li> <li> RMG added ~₹245 crore </li> <li> Combined exposure: ~₹1,500 crore+ </li> </ul> That’s roughly 24% of payment services revenue concentrated in just two segments. Both later attracted regulatory scrutiny. <h2>C) Why RBI Stepped In ??</h2> This wasn’t sudden or arbitrary tightening. From a regulatory lens, both categories had structural concerns. <h2>1️⃣ Rent & Related Payments: A Compliance Challenge</h2> Rent payments were often routed through: <ul data-spread="false"> <li> Credit cards </li> <li> P2P-style flows masking merchant transactions </li> <li> Repeated usage enabling credit cycling </li> </ul> From the RBI’s perspective, this led to: <ul data-spread="false"> <li> Weak end-use traceability </li> <li> Blurred merchant classification </li> <li> Potential misuse of UPI rails for credit </li> </ul> As a result, PhonePe discontinued rent and related payment categories in September 2025. The revenue decline reflects this clearly: <h3>Rent Revenue as % of Platform Revenue</h3> <img src="https://unlistedzone.com/storage/knowledge-logo/app_image-1769496857.jpg" alt="" width="50%" /> This stream is now structurally removed, not temporarily suspended. <h2>2️⃣ Real Money Gaming (RMG): When Regulation Changed the Math</h2> RMG once looked attractive: <ul data-spread="false"> <li> High take rates </li> <li> Low infrastructure costs </li> <li> Strong margins </li> </ul> But regulation altered the economics. <h3>RMG Revenue Decline</h3> <img src="https://unlistedzone.com/storage/knowledge-logo/app_image-1769496886.jpg" alt="" width="50%" /> Key pressure points: <ul data-spread="false"> <li> 28% GST on deposits compressed margins </li> <li> Higher compliance requirements </li> <li> Rising concerns around consumer harm </li> <li> Payment apps acting as indirect gambling rails </li> </ul> RMG wasn’t banned. It simply became less attractive for a payments-first platform. <h2>D) The Near-Term Impact: Optics Do Take a Hit</h2> From the FY25 snapshot: <img src="https://unlistedzone.com/storage/knowledge-logo/app_image-1769496913.jpg" alt="" width="50%" /> The impact is clear: <ul data-spread="false"> <li> Slower reported payment revenue growth </li> <li> Softer year-on-year comparisons </li> <li> Short-term headline pressure </li> </ul> That’s why some observers believe PhonePe could be affected in the near term. <h2>E) What the Market Often Overlooks</h2> Strip out rent and RMG, and what remains is PhonePe’s strongest, cleanest revenue engine. <h3>Core Payments Revenue (Excluding Rent & RMG)</h3> <img src="https://unlistedzone.com/storage/knowledge-logo/app_image-1769496943.jpg" alt="" width="50%" /> Two clear signals emerge: <ul data-spread="false"> <li> Merchant payments are scaling rapidly </li> <li> This revenue is fully regulator-aligned </li> </ul> This is the segment the RBI is most comfortable with: <ul data-spread="false"> <li> Transparent audit trails </li> <li> Lower misuse risk </li> <li> Long-term monetisation via ads, subscriptions, and merchant credit </li> </ul> <h2>F) Did PhonePe Actually “Lose” Revenue?</h2> Not exactly. PhonePe chose to step away from higher-risk revenue. Yes, growth may look slower in the short term. But the trade-off is meaningful: <ul data-spread="false"> <li> Lower regulatory overhang </li> <li> Better quality of earnings </li> <li> Stronger long-term credibility </li> </ul> Fast-growing revenue isn’t always durable revenue. <h2>G) The Bigger Picture: A Pause, Not a Permanent Roadblock</h2> RBI action has slowed certain revenue lines. Headline growth may look softer for a while. But this isn’t the end of the story. The government has little incentive to permanently dismantle the Real Money Gaming industry, estimated to be worth over $3 billion and supporting a large digital ecosystem. What’s more likely is a relaunch under clearer, tighter rules: <ul data-spread="false"> <li> Controlled deposit mechanisms </li> <li> Stronger KYC and spending limits </li> <li> Clear separation of skill vs chance </li> <li> Better auditability for payment platforms </li> </ul> In short, RMG isn’t being eliminated—it’s being redesigned. When clarity returns, compliance-ready platforms like PhonePe are well placed to re-enter. <h3>UnlistedZone Takeaway</h3> PhonePe isn’t shrinking. It’s navigating a regulatory hurdle—and positioning itself to accelerate once the road clears

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