Paytm Share Price

Company Overview

Company Journey

• In 2017, the Paytm FASTag was introduced pan India, by Paytm Payments Bank.
• Paytm received a significant round of investment from SoftBank in May 2017, boosting its valuation to an anticipated US$7 billion (approx ₹57,881 crore).
• The company became the first payment app in the nation to achieve 1,000 lakh downloads in 2017.
• As of March 1, 2021, the company had more than 1,500 lakh active users and 120 crore monthly transactions.
• The company launched Paytm Gold in 2021, a product that enables users to buy one rupee's worth of solid gold online. Additionally, it also launched the Paytm Payments Bank and 'Inbox,' a platform for in-chat payments.
• Berkshire Hathaway invested ₹2,200 crore for a 3% to 4% stake in the company in August 2018.
• The company also launched a mini-app store in 2020 to help Indian software developers.
• Paytm announced the launch of its IPO in November 2021, seeking ₹18,300 crore at a valuation of about ₹1,50,000 crore. It was the largest IPO in India’s history.
• The shares commenced trading on the NSE at ₹1,950 on November 18, 2021. This amount was already 9.3% below the IPO price range's upper band and closed at ₹1,560. It was the most significant decrease on a listing day in the history of Indian IPOs.

Business Highlights

• Financial and payment services
• Cloud services and commerce

1. Financial And Payment Services

• The transaction fee charged from merchants based on a portion of GMV (Gross Merchandise Value).
• The convenience fee charged from customers for specific kinds of transactions
• Recurring payments for some products and services, such as Paytm Soundbox and POS (Point-of-sale)

• A fee for sourcing loans from financial institution partnerships is often paid when the loan is disbursed and is calculated on some per cent of the loan balance.
• A fee for the collection services by Paytm is tied to the amount collected from financial institution partners based on a percentage of the loan balance.

2. Cloud services and commerce

Company Growth

• Payments and financial services accounted for much of Paytm's revenue, which increased by 83% to ₹3,858 crore in the financial year 2022 from ₹2,109 crore in 2021.
• Revenue via payment services to merchants increased by 87% from ₹1,012 crore in the financial year 2021 to ₹1,892 crore in the financial year 2022. This growth was primarily the result of new, sizable partnerships in the payment gateway and an expansion of the company's device merchant base.
• Paytm saw a 59% growth in revenue from cloud services and commerce, from ₹693 crore in 2021 to ₹1,105 crore in the year ending March 2022.

Performance Highlights

• Mirae Asset Large Cap Fund Regular Growth
• Mirae Asset Emerging Bluechip Fund Growth
• Aditya Birla Sun Life Frontline Equity Fund Growth
• Aditya Birla Sun Life Flexi Cap Fund Growth
• Aditya Birla Sun Life Flexi Cap Fund Growth
• Mirae Asset Tax Saver Fund -Regular Plan-Growth

Management

• Vijay Shekhar Sharma (Chairman, M.D. & CEO)
• Douglas Feagin (Non-Executive Director)
• Neeraj Arora (Non-Executive & Independent Director)
• Ravi Chandra Adusumalli (Non-Executive Director)
• Pallavi Shardul Shroff (Non-Executive & Independent Director)
• Mark Schwartz (Non-Executive & Independent Director)
• Ashit Lilani (Non-Executive & Independent Director)
• Madhur Deora (CFO, Executive Director & President)

Investor Relations Contact

Industry Overview

• IRCTC: ₹61,112.00 crore
• Zomato: ₹55,671.86 crore
• FSN E-Co Nykaa: ₹53,742.22 crore
• Just Dial: ₹5,355.96 crore
• Indiamart Intermesh: ₹14,670.96 crore
• MobiKwik: ₹2,430 crore

Industry Risks and Concerns

• The Fintech bubble The foundation for most Fintech solutions is data monetisation, yet this has the potential to lead to a 'bubble.' Some experts claim that the fintech sector is forming and may soon burst into a bubble similar to the 'dot-com' boom during the years of the early 2000s. The absence of a clear definition of what actually falls under the category of 'fintech' is a speculated cause.
• Data protection The chances of a data breach are growing dramatically as the financial industry becomes increasingly more prominent. There is also the concern that the current precautions are insufficient to reduce the risk.
• Lack of regulations Fintech is an unchecked industry without a consistent regulatory strategy.

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