Paytm is an Indian digital payments and financial services company, based in Noida. It was founded in 2010 by Vijay Shekhar Sharma under One97 Communications.
Paytm share prices continue to decline
Now analysts believe if this sell-off continues, Paytm’s share price could dip down even further to ₹500-₹550 mark. “Paytm share price may touch the level of 500 levels [sic] very soon. The negative sentiments in the stock has triggered a massive sell-off and the probability of rebound very frail. Investors are advised to exit the stock and wait for stability at lower levels for fresh entry,” Ravi Singh, vice president and head of research at Share India, told Business Insider.
Since its listing on November 18, Paytm’s shares are down over 70% from the issue price of Rs 2,150 apiece. Through the initial public offering at the issue price, the company had sought a valuation of Rs 1.39 lakh crore, and as of early Monday its market capitalisation stood at Rs 44,423 crore.
Paytm share price: After plunging around 27 per cent after listing on Thursday, Paytm shares today further crashed near 10 per cent in early morning deals. Shares of the digital payments startup today opened with a downside gap of ₹51.80 per shares, and went on to lose around 17 per cent from its listing date close of ₹1560.80 per shares on NSE. Paytm share price today is at ₹1286.60 (at 12:31AP) on NSE, which is around 40 per cent lower from its upper price band of ₹2150 per equity share.
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Paytm’s future depends on its ability to better integrate with other companies
Paytm operates across multiple TAMs, most of which may grow at 20 per cent plus CAGRs over the next 5 years, the foreign brokerage said, adding that Paytm remains well-positioned to capture share of digital payments in India and view Paytm’s business model as characterized by network effect.
“When Paytm successfully plugs in the finance at the back and tech at the front, they probably would deserve to score higher numbers. I am keeping my eyes and ears open. If they do so, then definitely they deserve a case as far as integration of finance with tech is concerned,” says Deven Choksey.
Harinder sees Paytm as the technology geek that understands what customers really want and need. And they are able to move faster than most traditional financial services organizations to deliver on those expectations. The opportunities for partnerships are immense.
Paytm is facing competition from other mobile payment platforms
Abhishek Agarwal, Managing Partner, Rockstud Capital, lists Paytm’s likely competitors. “Paytm is trying to be the super app of India to capture the young, new, digital audience. Looking at Reliance, Tata, Facebook and Google fighting in this space, this IPO valuation definitely is expensive,” he says. The valuation could be put to the test soon as Paytm plans to raise Rs 2,000 crore in a pre-IPO placement. While the terms of the offering are not yet decided, it will serve as a benchmark for the upcoming IPO.
Call it staying ahead of the competition or the logical next step, but Paytm has launched a slew of such products, including loans, investments and insurance, over the past few years. With Paytm, the Sharma-led One97 Communications is essentially replicating what Jack Ma did with Ant Group’s digital payments platform, Alipay.
Over the next few years, Paytm added dozens of new use cases for its technology. Paytm’s mobile payment platform was, for a time, the only payment method accepted by Uber in India. It partnered with a wide range of transport, utility and entertainment companies to create digital payment systems. And it launched an e-marketplace where customers can find almost any item or service available in India, often at a discounted rate.
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