Axis Capital Limited, Citigroup Global Markets India Private Limited, Goldman Sachs (India) Securities Private Limited, HDFC Bank Limited, ICICI Securities Limited, J.P. Morgan India Private Limited, Morgan Stanley India Company Pvt Ltd
One97 Communications Limited (“Paytm”) was incorporated on December 22, 2000. The company is India’s leading digital ecosystem for consumers and merchants. Paytm offers ‘Payment Services’, ‘Commerce and Cloud Services’, and ‘Financial Services’ to 33.3 crore consumers and over 2.18 crore merchants registered with them, as of June 30, 2021. Their 2-sided (consumer and merchant) ecosystem enables commerce, and provides access to financial services, by leveraging technology to improve the lives of their consumers and help their merchants grow their businesses. In 2009, the company launched the first digital mobile payment platform, “Paytm App” to offer cashless payment services to customers and now, it became India’s largest payment platform and the most valuable payments brand with a total brand value of US$6.3 billion as per Kantar BrandZ India 2020 Report. The app enables customers to do cashless transactions at stores, top-up mobile phones, online money transfers, pay bills, access digital banking services, purchase tickets, play games online, buy insurance, make investments, and more. However, merchants can use the platform for advertising, online payment solutions, offering products to customers, and loyalty solutions. Paytm is a professionally managed company with no identifiable promoters.
For year/ period ended ( in Cr.)
|31 Mar 2021||31 Mar 2020||31 Mar 2019|
|Profit After Tax||-1701||-2942.4||-4230.9|
This company is a mega player in the digital ecosystem segment and has a lion share, but its top line has remained almost static for the last three fiscals and has been incurring losses for all these years and may remain in red in the near term too as per RHP. It has huge carried forward losses and negative earnings. Issue pricing is with a negative P/E. Hence, cash surplus investors may consider subscribe with a long term perspective.