![]() ![]() While financial services are a relatively new part of the company’s business, Deora said he is excited about the opportunity to be “democratic” with lending, and reach everyone from the self-employed to the daily-wage laborer. (GOOGL) have joined the fray by launching their own mobile payments systems that make use of the Unified Payments Interface (UPI), an Indian government-backed technology.ĭeora said he is not worried, as UPI-based payments make just one “chunk” of Paytm’s business, which has now expanded into commerce, lending and other sectors. ![]() Skeptics have pointed to mounting competition, particularly as Facebook ![]() Paytm expects the number of smartphone users in India to hit 800 million in the next five years, giving a significant boost to its business. Having said that, he added, “our aim is to reach 500 million Indians … So we would continue to spend on marketing.”Īs the cost of data and internet in India falls, its population of 1.3 billion is coming online at a rapid pace. “We have found that it is easier - much easier - than two years ago to acquire and retain customers, hence, we are spending a lot less.” “Two years ago, we were in this super high investment phase where we were creating a lot of consumer and merchant traction on the platform,” Deora said. “We expect to continue to incur net losses for the foreseeable future and we may not achieve profitability in the future,” it said in its IPO filings, adding that the company will continue to spend heavily on hiring, marketing and building infrastructure. Madhur Deora, a President at SoftBank-backed Indian payments firm Paytm, poses for a photograph inside his house in Mumbai, India, Sept. While Paytm’s IPO was eventually fully subscribed, much of the local media coverage has been lukewarm, highlighting that the company took longer to find buyers for its shares than two other Indian startups in recent months, food delivery company Zomato and e-commerce firm Nykaa. However, the response in India has been different. (SFTBF) founder and existing Paytm investor Son declared that,”for us, their IPO should be a great event.” And on the day of the launch earlier this month, Softbank The company raised $1.1 billion from BlackRock and the Canada Pension Plan Investment Board just before the IPO opened, according to an exchange filing. It has 337 million registered consumers and 22 million merchants, according to its IPO filing.Īt the listing ceremony on Thursday, an emotional Sharma called the company’s purpose of bringing millions of Indians into the mainstream economy “pious.”įoreign investors have been enthusiastic. Thanks to the momentum provided by the cash ban, Paytm is now the biggest payments platform in one of the world’s fastest growing economies. It made us “a folklore name in this country,” Shekhar told CNN Business in 2019. The move was hugely disruptive for the economy, but it helped Paytm grow at an explosive rate: The company signed 10 million new users within a month. That day also marked five years since Prime Minister Narendra Modi banned two of the country’s biggest currency notes. Paytm’s founder, Vijay Shekhar Sharma, went to “ seek blessing of God” at the Tirupati Temple, one of India’s most famous places of worship, on November 8 - the day Paytm launched its IPO. “A lot of well-wishers and friends messaged, saying, ‘Oh, I’m getting a prayer done at Golden Temple for Paytm’s success,” said Deora, referring to the central place of worship of the Sikh religion. India has been churning out billion-dollar startups for years, but the rush for those unicorns to go public started only a few months ago. Its public debut has been keenly watched by professional and amateur investors alike. (BABA), Paytm is one of India’s best funded startups. With backing from investors such as Warren Buffett, Masayoshi Son and Alibaba The former investment banker has been with the company for five years.īut the amount of attention it drew took him by surprise. “The outcome of the IPO was not in doubt,” Madhur Deora, the president and group CFO of Paytm, told CNN Business last week. India's newest billionaire Falguni Nayar built a beauty empire ![]() Falguni Nayar, managing director and CEO of Nykaa, an online marketplace for beauty and wellness products, speaks with people during the company's IPO listing ceremony at the National Stock Exchange in Mumbai on November 10, 2021. ![]()
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