Contrary to a popular trend among Indian FinTechs, simply adding a lending product is not a surefire way to make money. PhonePe's CTO warns that lending is an extremely difficult business to get right and is globally known for causing startups to fail.
For data-less decisions, PhonePe's co-founders have a simple rule: the partner with deeper historical strength in that domain makes the final call. The other commits fully, and they never revisit the decision, ensuring they learn and move forward without blame.
The long-standing relationship between PhonePe's co-founders, built on deep trust, allows them to be interchangeable in their roles. This enables one to step back during difficult periods while the other steps in, ensuring resilience through crises.
PhonePe practices radical transparency by sharing its board decks, complete with financial data like P&L and burn rates, across the entire company. Unrestricted, cross-departmental data access fosters high engagement, ownership, and unexpected innovation.
Recoiling from Flipkart's complex leveling system (which spawned an "SD 2.5" role), PhonePe's CTO implemented a flat hierarchy with minimal titles. This structure aims to focus engineers on impact and capability growth, rather than chasing promotions and labels.
Learning from Flipkart's constant catch-up cycles, PhonePe's founders rejected the scrappy MVP approach. They invested nine months upfront to build a payment stack capable of future scale, ensuring technology was never a blocker to business growth.
Rather than competing secretively, PhonePe openly shared its UPI failure data and even its onboarding copy with the government's Beam app. They correctly bet that improving the overall ecosystem's reliability and adoption would create a massive tailwind that would lift their boat highest.
PhonePe de-risked its crucial early hires by exclusively recruiting former colleagues from Flipkart or people who had worked directly with those colleagues. This "homecoming" strategy ensured a high-trust, high-performance team from day one, bypassing traditional interview processes.