Tech 3 | Why Bengaluru is India's startup capital; a central law for online gaming; and more

One important thing: Paytm gets a double upgrade from...wait for it…Macquarie!!?

Since Paytm's initial public offering in November 2021, the brokerage has been extremely bearish. It has published numerous research reports questioning Paytm's path to profitability, and each time, the stock price has reacted significantly.

But today, analysts at Macquarie gave a double upgrade to Paytm to ‘outperform’ from ‘underperform’ with a raised 12-month price target of Rs 800. The stock obviously rallied, and ended nearly 15 percent up! (Phew! Perhaps some relief for investors)?

In today’s newsletter:

• PhonePe CEO on why B’luru is India's startup capital
• A central law for online gaming
• Digital lenders knock on MeitY's doors

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PhonePe CEO on why B’luru is India's startup capital

The battle over which city in India is the startup capital continues, and Sameer Nigam, co-founder of digital payments decacorn PhonePe, has one unequivocal answer:? Bengaluru.

“Anyone counting startups in Delhi and terming it to be the startup capital is making up stuff…Bengaluru is absolutely the startup capital of the country,” Nigam said.

Why does he think so?

He narrows it down to three things:

• The city’s technology pathos?
• Best weather + affordable living for migrants
• The presence of a full ecosystem for startups

PhonePe’s ghar wapsi

PhonePe announced in October 2022 that it had completed the process of shifting its domicile from Singapore to India — and it paid Rs 8,000 crore in taxes to do so.

Nigam addressed this, stating that it made sense given that India is their home market and where their customers and employees are located. He is certain that he wishes to list in India as well.

“We want to go public here. We believe the market will reward us if we're doing well here,” he said.

More on that here.?

On banking ambitions

PhonePe is the top player in the Indian payments ecosystem, and while the aspiration is there, Nigam believes they are not there yet and still need to grow.

He said that they have been around for seven years, so people don't want to put their money in a PhonePe bank right now.

• The answer, however, may change in 10 years, he said

Nigam also mentioned that PhonePe is aiming to become a full-fledged financial services super app.

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