Paytm IPO had attracted a subscription of slightly less than two times. Bengaluru-based PhonePe, one of India's biggest digital payments platforms, recently bagged $700 Mn from Flipkart's US parent Walmart and other existing investors at a post-money valuation of $5.5. Paytm-parent's IPO subscribed 18% on Day 1. Some analysts have questioned the company's valuation and path to profitability. The much-hyped listing of Paytm, however, saw its stock listing at a 9 per cent discount to its offer . Nikhil Kamath of Zerodha explains why investors are wary of India's digital payments start-up Paytm . BENGALURU, Nov 10 (Reuters) - Paytm's $2.5 billion initial public offering (IPO), India's largest, was oversubscribed at the close of bidding on Wednesday, although investors showed less enthusiasm. Airtel has quietly built its Payments bank from strength to strength which turned profitable in Q2FY22 and is the closest competitor of Paytm Payments Bank. "In every Paytm business there is already an incumbent player and there is no clear path to profitability. Indian startups, but decided not to invest in Paytm. Paytm. As Paytm, Zomato Tank After Listing, 2 Tech Start-ups Delay IPOs: Report . Sharma's comments on the company's path to profitability and the business growth numbers notified by the company lifted Paytm's stock to over 3% on the BSE. It slid about 8% on Wednesday after a post-listing . There is a lot of talk about how Paytm's business is bad. Paytm's valuation is down by more than 45% from the listing prices. Their losses is 100s of crores every quarter. Paytm's listing could bring "an end to obnoxious pricing in IPO markets", Mumbai-based investment advisor Sandip Sabharwal said, adding that too many of the companies did not have a clear path to . In fact, last year proved to be a watershed year for this Noida based startup as the company saw its business roaring in the wake of massive demonetisation exercise. It should be able to reach cash flow break-even in the next 18 to 24 months . Loss . You may ask why are they running a loss making business. These investors can now sell shares as lock-up rules in India prevent them from doing so for a month after allotment. "We could have priced the IPO higher if we wanted to but we thought that this is the right balance for making sure that the investors who come in the Paytm IPO should be treated very fairly and this is where we were comfortable," says Madhur Deora, President & Group CFO, Paytm. Concerns have also been expressed about a lack of clarity regarding Paytm's path to profitability and business model. Paytm's weak performance was ascribed to its expensive valuation, questionable business model, lack of clarity on the path to profitability, and cutthroat competition. The trouble is that in recent years Paytm has added whatever seems to be fashionable in fintech to its app, from digital gold investing to stock trading and insurance, and naturally, it would offer crypto if India were . He is using expansion into a variety of financial services to . "Paytm has unsustainable cash burn, and it has to get to profitability. "We could have priced the IPO higher if we wanted to but we thought that this is the right balance for making sure that the investors who come in the Paytm IPO should be treated very fairly and this is where we were comfortable," says Madhur Deora, President & Group CFO, Paytm. Path to profitability: The company should be showing declining losses. And by that we mean operational profitability, not EBITDA. Paytm is ploughing $100 million into Paytm Money, which the CEO said will lead the parent company into operational profitability. The Street has been apprehensive of the valuation, deemed to be expensive, for a business that could take time to become. BENGALURU -Paytm's $2.5 billion initial public offering (IPO), India's largest, was oversubscribed at the close of bidding on . As of its last earnings report, Paytm's parent firm. Paytm is perhaps the largest and best-known domestic name in mobile payments in India, but it continues to struggle on the path to profitability. Paytm's price, which is 26x FY23E's price to sales (P/S) is high particularly when the company's profitability isn't evident for a long period of time. Digital payments and financial services firm One97 Communications, which operates under the Paytm brand, on Friday reported a widening of consolidated loss t. There have also been concerns around the Noida-based company's business model and path to profitability. People underestimate the size of payments revenue,'' Sharma said while responding to a query about concerns on a company's path to profitability. In the IPO prospectus, the company did warn that with increasing operating expenses in future, it may not be able to achieve and maintain profitability. Through their famed Cashback and reward scheme, they were able to amass. The local brokerage firm Dolat Capital Market Pvt., however, still rated Paytm a buy at a target price of 2,500 rupees ($32.89)and anticipated that the firm would turn a profit by March 2026 . "Another $1 billion is not necessarily that path." Forget breakeven or profitability, the Noida-based . (Bloomberg) -- Shares of Indian digital payments giant Paytm closed at the lowest since their market debut last month following the nation's biggest-ever initial public offering, as investors remain concerned about the startup's path to profitability. Paytm is starting to stage a recovery from its disastrous stock market debut last week, but the digital payments firm faces an uphill battle winning over investors worried about its ability to . "Paytm has unsustainable cash burn, and it has to get to profitability. Paytm's share price on Wednesday dipped to an all-time low of Rs 1,075 apiece and closed at Rs 1,083.4 a unit, down by 3.22 per cent compared to the previous close at the BSE. Data Source: DRHP, Company Fillings Compared to a 2 year revenue CAGR of 57% of Airtel Payments Bank, Paytm posted a measly 9.15%. Paytm's crash and the puzzling future of Indian tech stocks . The only way Paytm can begin generating enough money to cover its costs, would be to begin lending on its . Market analysts point to a host of reasons for this poor show, including the lack of a clear path to profitability, an inflated pre-IPO valuation, and the competitive nature of the payments business in India, among others. "Paytm is on the path to profitability now," the source said. Another broker after Macquarie, another brokerage JM Financial, has assigned a target price to the stock in the sub-Rs 1300 range. And by that we mean operational profitability, not EBITDA. The analysts mention that the company has drawn in equity capital of ₹19,000 crore since its inception, of which nearly 70% (₹13,200 crore) has gone towards funding losses. Paytm's tepid listing on the bourses had raised concerns about the company's monetisation plans and the path it intended to take towards profitability Bismah Malik Dec 23, 2021, Forget breakeven or profitability, the Noida-based company . The trouble is that in recent years Paytm has added whatever seems to be fashionable in fintech to its app, from digital gold investing to stock trading and insurance, and naturally, it would offer crypto if India were . Paytm is still loss making; in the previous financial year, it reported a net loss of Rs 1,701 crore on a revenue of Rs 3,186.8 crore. The company's financials are a good measure of the health of its business and whether it can set itself on the path to profitability. Three years for product-market fit, three years for monetisation pitch, (and then profitability)," Sharma said. Again the answer is simple,it's for customer acquisition and retention. Summary. Paytm's market cap at Rs 1.17 lakh crore is bigger than IndusInd, Federal and RBL Bank. "Paytm has unsustainable cash burn, and it has to get to profitability," Roy said. "If the company continues the way it is doing right now 18 months is quite reasonable, assuming there is no COVID-related impact to . "Investors are no longer enamored of the household name startups; they want a path to profitability and returns, not . Macquarie said Paytm's valuation was expensive especially when the path to profitability is unclear. The path to the profitability of Vijay Shekhar Sharma's company remains unclear, thus making investors wary. Paytm again is a leader in the . Another $1 billion isn't necessarily that path," Roy said. Paytm Chief Executive Officer Vijay Shekhar Sharma in a recent interview said the stock's early tumble was . In the path to profitability, there are new products planned. The pressure points on revenue, the sobering outlook and the sticky costs . The company is looking for a fintech start-up in India that can be acquired and as a result be listed on the Nasdaq through the SPAC. For Paytm, the path to profitability would likely be contingent on regulatory approval. Mumbai: Shares of Indian digital payments giant Paytm closed at the lowest since their market debut last month following the nation's biggest-ever initial public offering, as investors remain concerned about the startup's path to profitability. Before Paytm's disastrous market debut in November, two analysts from Macquarie Capital Securities said the company was overvalued at Rs 2,150 a share because of its heavily cash-burning business model and lack of a clear path to profitability, among other things. New-age companies with large cash burns who are planning to go for an IPO would look to give realistic valuations to the market as well as define a clear path to profitability," said Ankur . Let us take a look to see if that is true. Paytm is also moving its efforts to become a dominant digital financial services platform with Paytm Postpaid, Paytm Money and Paytm Insurance . The report states that Paytm has been a cash-burning machine, spinning off several businesses with no visibility on achieving profitability. Paytm doesn't have a clear path to profitability and that's irking investors: Analyst. Paytm finds buyers, but no blow-out demand in India's largest IPO. Answer (1 of 3): Paytm is making losses currently. Performance of Paytm's merchant business. Through their famed Cashback and reward scheme, they were able to amass. The stock dropped 5.6% to Rs 1,321 in Mumbai, extending this week's losses to almost 16%. Vijay Shekhar Sharma, founder and CEO of Paytm, said in a recent online conference that the company will be profitable by the end of 2021. Paytm in Focus Again as Analysts Query CEO on Path to Profit Some analysts say company's earnings are not encouraging CEO Sharma points to growth in lending, commerce segments Unlike Flipkart (which is India's most valued startup), Paytm has rarely faltered in its long-drawn path to profitability. In fact, last year proved to be a watershed year for this Noida based startup as the company saw its business roaring in the wake of massive demonetisation exercise. Preparing for content like Apple did There was a time when Paytm was just a wallet app, but today it has gone on to offer much more . If the company continues the way it is doing right now 18 months is quite reasonable, assuming there is no COVID-related impact to the business . In a recent note , Sydney-headquartered investment banking and financial services firm Macquarie said Paytm's business model "lacks focus and direction" and that the . The company is a cash guzzler and achieving scale with profitability is a big challenge, said Macquarie while adding that it expects Paytm to generate positive free cash flow only by FY30. "Paytm is on the path to profitability now. Shares of Indian digital payments giant Paytm closed at the lowest since their market debut last month following the nation's biggest-ever initial public offering, as investors remain concerned. The fintech's licensed banking arm already is, but payments by themselves don't make money. Paytm's share price on Wednesday dipped to an all-time low of Rs 1,075 apiece and closed at Rs 1,083.4 a unit, down by 3.22 per cent compared to the previous close at the BSE. Again the answer is simple,it's for customer acquisition and retention. Furthermore, Paytm's "unclear" path to profitability earned meant the research house termed it an "expensive valuation." " We are unwilling to giv e it a premium here as we are unsure about the path to profitability. McLaren Technology Acquisition Corp is a blank-cheque company that has raised Rs 1,500 crore ($201 million) for its special purpose acquisition vehicle (SPAC) and listed on the Nasdaq earlier this month. I am not saying that Paytm cannot - with due credit to the entrepreneurship spirit in India, people have put in the hard work. But whatever the reason, this episode has left other . When you combine that with the valuation, it just doesn't sit right," said a fund manager with an investment firm that has stakes in several Indian startups, but decided against investing in Paytm. Ebixcash, a wholly . Answer (1 of 3): Paytm is making losses currently. All this bad news for Paytm comes on top of its lack of clear path to profitability, which has perturbed analysts since its IPO launch. Paytm, an India-based fintech company, recently had the largest IPO offering to date in India. But Vijay Shekhar Sharma, chief executive officer and founder of the payments platform, is not "disappointed". Macquarie Capital Securities (India) has initiated coverage on One97 Communications, the parent company of Paytm, with an 'Underperform' rating and a target price of Rs 1,200. Paytm's expensive valuation, lack of clarity on the path to profitability, and cutthroat competition are believed to be the key reasons behind its weak market debut. Their losses is 100s of crores every quarter. Paytm Investors' Payday Might Never Come . Paytm shares were changing hands at 1,645 rupees in morning trade versus the offer price of 2,150 rupees. In the first two days of trading, Paytm shares tumbled by more than 30%. "In every Paytm company, there is already an established player and there is no clear path to profitability. "We are on path to become profitable by 2022. For the largest-ever listing in the Indian corporate history, SoftBank- and Ant Financial-backed fintech decacorn Paytm's debut on local bourses was tepid. Regulatory trouble and—perhaps—geopolitical tensions are further clouding the Indian fintech giant's murky path to profitability.
Bass Trombone Solo Repertoire, Rickenbacker 330 Jetglo For Sale, Eternals Banned Scene, Staff Appreciation Day Ideas, Roll20 Minimize Player Icons, Goalsetter Basketball Hoop Sale, Sigachi Industries Ipo Allotment Chances, What Size Is A 46 Leather Jacket, Adam Armstrong Salary Southampton,