PhonePe readies market debut; MSMEs push for predictable cash flows

Hello,

Jeff Bezos’ Blue Origin plans to launch over 5,400 satellites to create a new communications network—TeraWave.

The network will offer continuous internet access around the world, with the ability to move large amounts of data more quickly than its competitors, according to a BBC report.

Moving on to the world of AI, investors have poured billions of dollars into the technology, and CEOs have commented breathlessly that AI will boost productivity. However, per a recent survey by PwC, more than half of the 4,454 CEO respondents said “their companies aren’t yet seeing a financial return from investments in AI.”

Although about a third (30%) report increased revenue from AI in the last 12 months, and a quarter (26%) are seeing lower costs, more than half (56%) say they’ve realised neither revenue nor cost benefits, the report said.

Meanwhile, NVIDIA CEO Jensen Huang has said the AI boom will create “six-figure salaries” for those building the factories supporting it. Huang’s comments at the World Economic Forum on infrastructure jobs come amid AI hitting the office workforce. 

Lastly, a specific type of mushroom makes people see little humans, and scientists want to understand why. Here’s more about the curious case of the “lilliputian hallucinations”.

In today’s newsletter, we will talk about 

• PhonePe readies market debut
• MSMEs push for predictable cash flows
• Digital tokens shake up global finance

Here’s your trivia for today: The phenomenon where clocks in proximity with one another will eventually synchronise their pendulums is called what?

Fintech 

PhonePe readies market debut

PhonePe, India's largest digital payments platform, has filed an updated draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) for what could be one of the most anticipated fintech IPOs.

The offering is structured entirely as an offer for sale, with no fresh capital being raised for the company. According to the filing, the initial public offering (IPO) comprises up to 5.06 crore equity shares being sold by existing shareholders.

Share sale:

• Walmart's WM Digital Commerce Holdings is offloading the largest portion at 4.59 crore shares. The retail giant currently holds an 83.9% stake in the payments firm. Tiger Global is selling 10.39 lakh shares, while Microsoft Global Finance Unlimited Company is divesting 36.78 lakh shares as part of the offering.
• The digital payments firm posted a comprehensive loss, net of taxes, of Rs 1,440.86 crore for the period, compared to Rs 1,201.63 crore in H1 FY25. The bottom line was pressured by a 29.7% surge in total expenses to Rs 6,069.27 crore.
• The final comprehensive loss was partially cushioned by exceptional items totalling Rs 434.47 crore, which came from the sale of PhonePe's stake in C.E. Info Systems, commonly known as MapMyIndia.

Funding Alert

Startup: Escape Plan

Amount: $25M

Round: Series A

Startup: Optimist

Amount: $12M 

Round: Seed

Startup: Dhun Wellness

Amount: $4M

Round: Undisclosed

Union Budget

MSMEs push for predictable cash flows

With Budget 2026 around the corner, manufacturing MSMEs across sectors—from power transmission and consumer durables to drones and home appliances- are striking a common note.

They want the government to fix bottlenecks that slow them down every day: weak infrastructure, delayed payments, high input costs, and policy timelines that do not match the realities of building manufacturing businesses in India.

Capital stability:

• While renewable capacity has expanded rapidly, transmission infrastructure has not kept pace. States such as Gujarat and Rajasthan are adding large renewable capacities, but evacuating that power reliably requires faster investments in substations, underground cabling, and high-capacity transmission lines.
• On the manufacturing front, Kalpesh Ramoliya, Founder and Chairman at Raj Cooling Systems, says capital expenditure incentives must be sharper and more MSME-focused. He also calls for simplification of GST on components and raw materials used in consumer durables.
• While the industry largely agrees that PLI has given manufacturing a push, many believe the next phase must focus on capability-building. Satapathy of BonV Aero highlights the need for targeted R&D and capital support for advanced drone technologies such as autonomy, secure communications, and high-energy batteries.

Explainer

Digital tokens shake up global finance

India's central bank has a problem. Around the world, companies are discovering they can move money across borders using stablecoins at a fraction of the cost and time of traditional banking. Stablecoins are digital tokens pegged to the dollar or other currencies, but mostly dollars.

And stablecoins are eating the world. Coin issuer Circle's USDC circulation grew 108% year-over-year to $73.7 billion. Overall stablecoin issuance reached over $315 billion as of January 2026, according to an S&P report, while JPMorgan projects it could reach $500-750 billion soon.

News & updates

• Hostile takeover: Paramount Skydance on Thursday extended the deadline on its hostile tender offer for Warner Bros Discovery to February 20, giving it more time to persuade investors that its bid for the Hollywood studio trumps a rival deal with Netflix.
• Airlines: GE Aerospace CEO Larry Culp has defended the jet-engine industry's pricing practices against airline industry complaints that soaring maintenance costs and engine shortages are straining their businesses.
• Reorganisation: Ubisoft shares plunged 34% on Thursday after the maker of the Assassin’s Creed video games announced a major organisational shake-up, alongside plans to shut studios and axe six games.

The phenomenon where clocks in proximity with one another will eventually synchronise their pendulums is called what?

Answer: Huygens synchronisation

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