![]() ![]() ![]() Read it every morning on TechCrunch+ or get The Exchange newsletter every Saturday.Īfter debuting last Thursday, Paytm has notched two double-digit declines, measured in percentage terms, during its first two days of trading. The Exchange explores startups, markets and money. After all, the company is incredibly well funded by investors that you know by name, and the Indian fintech giant has sufficiently scaled into a global brand. An expected moderation in the high-margin wallet business could lead to sustained pressure on revenue growth especially in the payments business, he said.If you weren’t paying close attention, you might have expected a different result from Paytm’s IPO. ![]() The company’s path to profitability could be through accelerating lending, commerce and cloud services as well as cutting down on marketing expenditure, said Anand Dama, head of research for banks and financial institutions at Emkay Global Financial Services. “Lending and advertising in particular are contributing significant amount of high margin monetization,” Sharma said, even as he acknowledged competition in those businesses. Paytm said its financial services segment saw higher revenues and profitability after volume growth, its commerce business which includes stock trading, airline and movie ticketing has bounced back, and increased uptake of cloud services has boosted advertising revenue. “Paytm is in both the consumer lending and merchant lending, we have a two-sided opportunity.” “India has a large opportunity for credit and the scale-up can be huge from where we stand today,” said Bhavesh Gupta, head of the company’s lending division, on the Saturday call. Still, fintech companies have struggled to make digital transactions remunerative in India’s vast electronic payments sector, particular in the consumer market where Paytm’s rivals include Alphabet Inc.’s Google Pay, Inc.’s Amazon Pay and Walmart Inc.’s PhonePe. Paytm has over 335 million users who utilize its platform to make payments and transfer money. Customers use Paytm to make payments and transfer money and Jack Ma’s Ant Group while growing into the country’s most-recognized payments brand. It snagged heavyweight backers including Masayoshi Son’s SoftBank Group Corp., Warren Buffett’s Berkshire Hathaway Inc. Sharma founded One97 two decades ago and began offering digital payments in 2014. Paytm raised $2.5 billion in its IPO but its debacle of a debut made it one of the worst initial showings by a major technology firm since the dot-com bubble era of the late 1990s. “We are fully committed to head down and execute and deliver great results quarter-on-quarter, year-on-year forward on that,” Sharma said in his opening comments. One97 Communications Ltd., operator of PayTM, was India’s biggest IPO Ĭhief Executive Officer Vijay Shekhar Sharma highlighted the company’s ramp-up in the key segment of lending - an important and fast-growing market in credit-starved India, where digital fintechs such as Paytm are serving millions of consumers and merchants. wrote in a note, initiating coverage with a sell rating and a 1,240 rupee price target. “Paytm faces stiff challenges in its customer acquisition engine which would slow down its revenue growth in the core payments business while scale-up of its related ecosystem businesses (Commerce, Cloud and Financial Services) leaves much to be desired,” analysts led by Sameer Bhise at JM Financial Institutional Securities Ltd. ![]() Revenue rose more than 60% in the same period, boosted by growth in financial, commerce and cloud services. Over the weekend, One97 reported its first financial results as a public company, with losses widening to 4.74 billion rupees ($63 million) in the July-to-September quarter from a year ago amid rising expenses. Keep reading list of 4 items list 1 of 4 India bans 43 apps in fresh wave of web sanctions against China list 2 of 4 Zomato IPO catapults founder towards list of Indian billionaires list 3 of 4 Profits at SoftBank’s Vision Fund impacted by China crackdown list 4 of 4 Paytm, Infosys offer India help in COVID vaccine bookings: Report end of list ![]()
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