![]() The company’s revenue rose 10.6% to $281 million in the financial year ended in March from the previous year, coinciding with the pandemic that drove up digital payments. I think that the company would turn profitable in one or two years,” says Modi of Reliance Securities. “Paytm has been consistently reducing its losses. Paytm also offers wealth management solutions through Paytm Money and banking services through Paytm Payments banks. It makes money by charging large merchants a fee. Paytm serves more merchants than any other payments firm in India, with over 20 million partners in its network. Indians use the service to pay for a wide range of services, from airline flights to movie tickets. Paytm is now one of India’s largest digital payments companies with around 337 million users, 50 million of whom are active monthly users. Japan’s SoftBank invested $1.4 billion in the company in 2018, and Warren Buffett’s Berkshire Hathaway chipped in $357 million in 2018. Sharma, who learned English by memorizing rock songs and reading their translations, became India’s youngest billionaire in 2017, when at age 39, he was worth $1.3 billion. In 2016, China’s Alibaba and Ant Financial invested a combined $471 million in Paytm, and in the year to follow, the company became India’s first payment app to cross 100 million users. ![]() It got a big boost in 2014 when ride-hailing firm Uber and Indian Railways listed it as a payment option. Nearly a decade later, Sharma introduced a digital payment platform, Paytm-short for pay through mobile-to serve consumers and retail shops that hadn’t yet adopted credit or debit cards. Jayasankar, whole-time director at Kotak Mahindra Capital Co., and “overall the mood for equity markets remains robust.” But now investors in India have largely priced in the crisis, says V. The turmoil swirling around Evergrande, the indebted Chinese property developer on the brink of default, briefly dimmed investor sentiment in India over fears that the crisis would hurt global demand for Indian-made materials like steel and cement. If Paytm’s share offer meets expectations it will likely reinforce a trend of global firms viewing Indian markets as an alternative to China, where a government crackdown on internet firms, online tutoring, and real estate has rattled investors. Paytm declined to comment owing to its quiet period. It counts China’s Ant Group, SoftBank’s Vision Fund, and Berkshire Hathaway among its investors. ![]() Paytm, a fintech company that Indians use for daily services like buying groceries and paying their electricity bills, narrowed its operating loss to INR16.55 billion ($220.6 million) in the financial year that ended March 2021, from INR 24.68 billion ($329 million) a year ago. Paytm’s IPO will be a significant milestone for India not only because of its sheer size-surpassing the previous IPO record of $2 billion set by state-run Coal India Limited in October 2010-but it will also be the second notable loss-making company after food delivery firm Zomato to raise money on Indian bourses.
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