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Shareholding Info
  • Foreign institutions-FII
    60.92 %
  • Other domestic institutions
    1.27 %
  • Retail and other
    35.02 %
  • Mutual Funds
    2.79 %

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Key Indices in NSE

Key Indices in BSE

Company Overview


Paytm, or 'Pay through mobile”, is a Fintech company based in Noida, Uttar Pradesh. The company provides full-stack payments and financial services to its customers.
Paytm was established in August 2010. It has an influence on eCommerce, digital payment systems and the financial services industry. The company offers a mobile application to its customers, to make monetary transactions and payments to various financial institutions and dealers.
Paytm added postpaid mobile, data card, and landline bill payments in 2013. Paytm Wallet was launched at the beginning of 2014. The company incorporated metro recharges, education fees and energy, gas and water bill payments in 2015.

Company Journey


Paytm evolved into a fintech startup in India. It gained influential valuation in less than 10 years after it was established. Given below are some of the recent milestones in the 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


Paytm focuses on offering full-stack banking and payment solutions to users and merchants. It levies transaction fees on retailers and convenience fees on their customers to generate revenue. The company's stock return between 2019 and 2022 has been measured at -58.33%.

Paytm divides its revenue across two revenue streams:
  • Financial and payment services
  • Cloud services and commerce

1. Financial And Payment Services


Paytm primarily derives its income for its payment services from:
  • 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)

Paytm generates revenue from the services and products offered within different sectors like finance, payment, retail, insurance, among many others. The product, the degree of participation in distribution, the kind of collaboration, product development, and collections all affect Paytm's revenue.

Paytm receives revenue for lending activities through its financial institution partners in the following ways:
  • 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.

Paytm levies an initial distribution cost on its financial institution partners per card issued. Incentives from card networks are also received by Paytm in order to promote card usage. The company receives a royalty from insurance partners for insurance products premised on a portion of the overall premiums for insurance goods sold through its platforms.

Paytm also receives a fee for its equity broking solutions, including a one-time account opening cost, transaction fees based on transaction types and amounts, and a yearly subscription fee. As of 2021, 75% of the company's revenue has emerged from financial and payment services.

2. Cloud services and commerce


Paytm charges its merchants a yearly subscription fee for its cloud services and software. In some instances, it also charges a fee on the basis of the level of activity on Paytm's platforms.
For its advertising revenue, Paytm organises marketing campaigns for merchants and charges them, based on the nature and scope of the campaign.
As of 2021, commerce and cloud services account for 25% of the company's overall revenue.

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


Net Profit (FY21-22)

₹-2,350.50 crore

Revenue (FY2021-22)

₹4,972 crore

Market Capitalisation (2022)

₹41,522 crore

EBITDA (2022)

₹1,518 crore

ROE (2022)

-17%

ROCE (2022)

-16%

Shareholding Pattern (2022)

Promotor Ownership 

Foreign Institutions

Domestic Institutions

Retail and Other Entities


0%

77.25%

0.7%

21.41%


Mutual fund Shareholding of Paytm includes the following:
  • 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


The executive management in Paytm includes:
  • 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


Amit Khera
Company Secretary and Compliance Officer
One Skymark, D Tower,
Sector-98, Noida,
201304
Mobile: +91 120 4770770
E-mail ID: compliance.officer@paytm.com


Industry Overview


Paytm faces competition from other key players such as IRCTC, Zomato, FSN E-Co Nykaa, Just Dial, Indiamart Intermesh, MobiKwik, etc. The respective market capitalisation of these key players is as follows:
  • 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

Company Name

Market Capitalisation

IRCTC

₹61,112 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

With a rate of adoption of 87%, India is ahead of the global average of 64% in the Fintech adoption sprint.

Over the recent years, the Fintech industry in India has seen incremental financial growth, drawing significant investment from sizable private equity and venture capital organisations.

During COVID-19, Fintech businesses benefited from the growing need to digitise financial services. In 2021, ₹63,500 crore were invested in the Indian fintech business, which resulted in the creation of over 15 unicorn fintech companies.

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.

Registrar


Link Intime India Pvt. Ltd.
Noble Heights, C-1 Block,
Savitri Market,
Janak Puri, New Delhi -110058,
Mobile: 49411000
E-mail ID: delhi@linkintime.co.in

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