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Research Report On Paytm: About The Company

Paytm is India's leading digital payments company that offers payments, banking, commerce, wealth management and insurance services. Founded in 2010 by Vijay Shekhar Sharma, it has over 300 million users. Paytm is expanding into new financial services like stockbroking, pensions and aims to profitability within 2 years by monetizing its large user base. It has raised $2.2 billion from investors like Softbank, Alibaba and T. Rowe Price and acquired companies to strengthen its offerings.

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419 views4 pages

Research Report On Paytm: About The Company

Paytm is India's leading digital payments company that offers payments, banking, commerce, wealth management and insurance services. Founded in 2010 by Vijay Shekhar Sharma, it has over 300 million users. Paytm is expanding into new financial services like stockbroking, pensions and aims to profitability within 2 years by monetizing its large user base. It has raised $2.2 billion from investors like Softbank, Alibaba and T. Rowe Price and acquired companies to strengthen its offerings.

Uploaded by

naina karra
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Research report on Paytm

About the Company:


Paytm is India's leading financial services company that offers full-
stack payments & financial solutions to consumers, offline merchants
and online platforms. The company is on a mission to bring half a
billion Indians into the mainstream economy through payments,
commerce, banking, investments, and financial services. One97
Communications Limited that owns the brand Paytm is founded by
Vijay Shekhar Sharma and is headquartered in Noida, Uttar Pradesh. Its investors include
Softbank, Ant Financial, AGH Holdings, SAIF Partners, Berkshire Hathaway,
T Rowe Price, and Discovery Capital.

Vijay Shekhar Sharma, Founder & CEO of Paytm and One97 Communications Limited together
own Paytm Payments Bank, country's largest digital bank with over 58 million account holders.
Working on its mission to bring un-served & under-served Indians under the formal banking
system, it has made banking accessible & convenient to people across the country through
innovative use of technology.

It's wholly-owned subsidiary 'Paytm Money' has achieved the distinction of becoming India's
biggest investment platform within its first year, and is now one of the largest contributors of new
Systematic Investment Plans (SIPs) to the Mutual Funds industry; it has already received
approvals to launch Stock Broking, Demat Services and National Pension System (NPS) services,
and strives to continue to broaden the financial services and wealth management opportunities to
the unbanked and underserved Indians.

Paytm First Games, which is another group company (a joint venture between One97
Communications Ltd and AG Tech Holdings), has quickly become India’s go-to gaming and stay-
at-home entertainment option for millions of users across the country. The platform caters to all
types of gamers with an exhaustive array of games for amateurs as well as e-sports for gaming
pros.

Paytm Insurance is a wholly-owned subsidiary of One97 Communications Ltd (OCL) and has
secured a brokerage license from IRDAI. It offers insurance products to millions of Indian
consumers across four categories including two-wheeler, four-wheeler, health and life. The
company aims to simplify insurance and create a seamless, easy to understand online journey for
its customers.
Mission Statement:
100 Million User product from India.
This is one of the greatest journeys we have undertaken. While we are focused on this mission,
we are working equally hard to be the most trusted mobile commerce brand in the country.

Board of Director:

Chairman Vijay Shekhar Sharma


CEO & Managing Director Satish Kumar Gupta
Independent Director Ashit Ranjit Lilani
Independent Director G S Sundarajan
Independent Director Vaibhav Goel
Independent Director Sairee Chahal

Partners of Paytm

Competitors of Paytm:

Google Pay Paypal Bhim UPI PhonePe FreeCharge MobiKwik


Business of Paytm:

Recharges Bill Payments Marketplace Wallet Buy & Sell

Funding:
 Paytm has raised a total of ₹2.2B in funding over 4 rounds.
 Their latest funding was raised on Feb 4, 2017
 Paytm is funded by 4 investors. Vijay Shekhar Sharma and One97 Mobility Fund are the most
recent investors.
 Paytm has made 17 investments.
 Their most recent investment was on May 4, 2020, when Rooter raised $1.7M.
 Paytm has had 1 exit, which was Little.
 Paytm has acquired 11 organizations. Their most recent acquisition was Balance on Aug 9,
2018.

Financial Highlights:
Future of the Company:
 Digital payment giant Paytm expects to turn profitable after two years as it is monetising the
existing customer base and eyes financial services as its next major frontier for growth, its
founder CEO Vijay Shekhar Sharma said.
 In an interview, Sharma said Paytm's growth is divided into three phases - first three years of
finding the right product-market fit; the next was revenue and monetisation; and the last phase
will be about profitability and free cash flows.
 In 2015, Paytm started deploying QR codes and by 2018-19 completed its product-market fit.
From 2019-20 onwards, it is monetising.
 "I would say at least 2 years because we are also a large dominant market share company and
we wouldn't want to lose market share while becoming profitable next quarter," Sharma said
when asked about the timelines for hitting profits.
 In the last 12 months, Paytm has seen pre-tax losses cut - thanks to monetisation, and not
reckless cost-cutting, he said, adding business like Paytm Payments Bank, commerce and
cloud were already profitable, while Paytm First Games and Paytm Mall is "close to
profitability".
 Paytm - which competes with Google Pay, Flipkart-owned PhonePe and others in the digital
payments space - had late last year raised USD 1 billion (over ₹7,000 crore) in funding from
US-based asset management firm T Rowe Price and existing investors, including SoftBank
and Alibaba, to fund expansion plans.
 Paytm had also said it plans to invest around ₹10,000 crore (USD 1.4 billion) over the next
three years to expand financial services. The last round of fund raising had valued the
company at about USD 16 billion.
 The company, which has introduced a new all-in-one payment gateway and business solutions
as well as an Android-based point of sale (POS) machine, currently has over 16 million
merchants across unorganised and organised sectors.
 As per reports in 2019, Paytm is going to raise money by going public; i.e, by way of IPO.

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