Paytm

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Paytm
PayTM
Company typePublic
IndustryFintech, E-commerce
FoundedAugust 2010; 15 years ago (2010-08)
FounderVijay Shekhar Sharma
HeadquartersNoida, Uttar Pradesh, India
Area served
India, Canada, Japan
Key people
  • Vijay Shekhar Sharma (Chairman & CEO)
Products
  • Mobile payments
  • Digital wallet
  • Paytm Payments Bank
  • Paytm Mall
  • Paytm Money
Services
  • UPI payments
  • Bill payments
  • Online shopping
  • Ticketing
  • Financial services
Revenue₹9,978 crore (US$1.2 billion) (FY24)
Decrease ₹-1,417 crore (US$-170 million) (FY24)
Number of employees
33,891 (2024)
Subsidiaries
  • Paytm Payments Bank
  • Paytm Money
  • Paytm Mall
Websitewww.paytm.com

Paytm, an acronym for "Pay Through Mobile", is an Indian multinational financial technology company specializing in digital payments and financial services, headquartered in Noida, Uttar Pradesh. Founded in August 2010 by Vijay Shekhar Sharma under One97 Communications Limited, Paytm started as a prepaid mobile and DTH recharge platform. It has since expanded into a comprehensive fintech ecosystem, offering services like UPI payments, digital wallets, bill payments, e-commerce through Paytm Mall, and wealth management via Paytm Money. Paytm competes with PhonePe, Google Pay, and Amazon Pay in India’s digital payments market. For FY23, Paytm reported a gross merchandise value (GMV) of ₹13.2 lakh crore (US$150 billion).[1]

History

Paytm was launched with an initial investment of US$2 million by Vijay Shekhar Sharma. It began as a mobile recharge platform and added bill payments by 2013.[2] In 2014, Paytm introduced its digital wallet, which was integrated by Indian Railways and Uber as a payment option. By 2015, it expanded into e-commerce, online ticketing, and utility bill payments.[3] The 2016 demonetisation boosted Paytm’s growth, with its user base growing from 1.18 crore in August 2014 to 10.4 crore by August 2015.[4]

In 2017, Paytm launched Paytm Payments Bank and became India’s first payment app to surpass 10 crore downloads.[5] In November 2021, One97 Communications went public, raising ₹18,300 crore (US$2.2 billion) in India’s largest IPO at the time, valuing the company at US$20 billion.[6] However, shares dropped 27% on listing day, marking the largest debut decline in Indian IPO history.[7]

Business Model

Paytm operates a two-sided ecosystem for consumers and merchants, offering UPI-based payments, QR code payments, Soundbox, and online payment gateways. It partners with financial institutions to provide microcredit, buy now, pay later, and insurance services. Paytm Mall serves as its e-commerce platform, while Paytm Money offers mutual fund investments.[8] The company also provides ticketing for movies, flights, and events, and operates an online gaming platform.[9]

Funding

Paytm has raised over US$5 billion across multiple funding rounds.[10] Below is a table of its major funding rounds:

Year Date Amount (US$) Investors Valuation (US$)
2011 October 10 million Sapphire Ventures -
2015 March 575 million Ant Financial (Alibaba Group) 1.8 billion
2016 August 60 million Mountain Capital (MediaTek) 5 billion
2017 May 1.4 billion SoftBank Group 10 billion
2018 August 356 million Berkshire Hathaway 15 billion
2019 November 1 billion TPG Capital, SoftBank, Ant Financial 16 billion
2021 November 2.2 billion IPO (public investors) 20 billion

Legal Entity Details

Paytm operates under One97 Communications Limited, a public limited company incorporated in India. Below is a table summarizing key legal entity details:[11][12]

Attribute Details
Company Name One97 Communications Limited
Incorporation Date December 22, 2000
Registered Location Noida, Uttar Pradesh, India
Corporate Identification Number (CIN) U64200DL2000PLC108985
GST Number 09AAACO3569N1Z6
Authorized Share Capital ₹1,500 crore
Paid-up Capital ₹63.47 crore
Number of Employees 33,891 (as of 2024)
Registered Address First Floor, Devika Tower, Nehru Place, New Delhi, Delhi, India – 110019
Directors Vijay Shekhar Sharma, Ravi Chandra Adusumalli, Ashit Ranjit Lilani
Subsidiaries Paytm Payments Bank, Paytm Money, Paytm Mall

Paytm Payments Bank, a subsidiary, was incorporated in 2017 and faced regulatory challenges, including a 2024 RBI directive restricting new deposits after March 15, 2024, due to non-compliance.[13]

Acquisitions and Investments

Paytm has made strategic acquisitions and investments:

  • Near.in (2015) – Acquired for US$2 million to enhance local services.
  • EduKart (2017) – Invested US$5 million in the education platform.
  • Insider.in (2017) – Acquired for US$35 million to bolster ticketing services.[14]

Market Position and Competitors

Paytm holds a significant share of India’s UPI market, processing over 1.37 billion digital transactions in June 2022.[15] It competes with PhonePe, Google Pay, and Amazon Pay, maintaining a strong position in QR code payments and merchant services.[16]

Challenges

Paytm faced regulatory hurdles, including a brief delisting from Google Play in 2020 for violating gambling policies.[17] In 2022, the RBI barred Paytm Payments Bank from onboarding new customers due to data privacy concerns.[18] A trademark dispute with PayPal in 2016 over logo similarities was another challenge.[19]

References

  1. ↑ "Paytm's GMV grows 13% to ₹4.05 lakh crore in Q1 FY24". The Hindu BusinessLine. The Hindu Group. 24 July 2023. Retrieved 18 April 2025.
  2. ↑ "Paytm Success Story – How Vijay Shekhar Sharma Built India's Fintech Giant". StartupTalky. StartupTalky. 4 July 2024. Retrieved 18 April 2025.
  3. ↑ "The Paytm Story: From a Recharge Platform to India's Fintech Leader". ResearchGate. ResearchGate GmbH. 29 May 2023. Retrieved 18 April 2025.
  4. ↑ "Paytm: A Journey Through India's Digital Payment Revolution". Business Standard. Business Standard Private Ltd. 1 February 2024. Retrieved 18 April 2025.
  5. ↑ "Paytm: A Journey Through India's Digital Payment Revolution". Business Standard. Business Standard Private Ltd. 1 February 2024. Retrieved 18 April 2025.
  6. ↑ "Paytm IPO oversubscribed nearly 2 times: FIIs flood issue". The Times of India. Bennett, Coleman & Co. Ltd. 11 November 2021. Retrieved 18 April 2025.
  7. ↑ "Paytm, India's biggest IPO, is also the biggest listing day loser". India TV News. India TV. 22 November 2021. Retrieved 18 April 2025.
  8. ↑ "Paytm – Driving India's Digital Economy". India Brand Equity Foundation. Ministry of Commerce & Industry, Government of India. 23 October 2024. Retrieved 18 April 2025.
  9. ↑ "Paytm Success Story – How Vijay Shekhar Sharma Built India's Fintech Giant". StartupTalky. StartupTalky. 4 July 2024. Retrieved 18 April 2025.
  10. ↑ "Paytm - 2025 Company Profile, Funding & Competitors". Tracxn. Tracxn Technologies Limited. 15 March 2025. Retrieved 18 April 2025.
  11. ↑ "Paytm - 2025 Company Profile, Funding & Competitors". Tracxn. Tracxn Technologies Limited. 15 March 2025. Retrieved 18 April 2025.
  12. ↑ "Paytm: A Journey Through India's Digital Payment Revolution". Business Standard. Business Standard Private Ltd. 1 February 2024. Retrieved 18 April 2025.
  13. ↑ "RBI bars Paytm Payments Bank from accepting deposits after March 15". Reuters. Thomson Reuters. 1 February 2024. Retrieved 18 April 2025.
  14. ↑ "Paytm acquires Insider.in to strengthen events business". TechCrunch. AOL Inc. 5 June 2017. Retrieved 18 April 2025.
  15. ↑ "Paytm processes 1.37 billion digital transactions in June 2022". The Economic Times. Bennett, Coleman & Co. Ltd. 5 July 2022. Retrieved 18 April 2025.
  16. ↑ "Paytm – Driving India's Digital Economy". India Brand Equity Foundation. Ministry of Commerce & Industry, Government of India. 23 October 2024. Retrieved 18 April 2025.
  17. ↑ "Google pulls Paytm app from Play Store for policy violation". The Hindu. The Hindu Group. 18 September 2020. Retrieved 18 April 2025.
  18. ↑ "RBI bars Paytm Payments Bank from onboarding new customers". Livemint. HT Media. 11 March 2022. Retrieved 18 April 2025.
  19. ↑ "PayPal files trademark case against Paytm over logo". The Economic Times. Bennett, Coleman & Co. Ltd. 18 November 2016. Retrieved 18 April 2025.

External Links

  • Official website
  • Paytm on Twitter
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