Paytm is an online digital wallet provider that offers services to its customers in India. Vijay Shekhar Sharma founded it on February 8, 2010. The company has more than 150 million registered users and provides money transfers, bill payments, mobile top-up, among other things. The company has also launched Paytm Payments Bank in 2018. Paytm app is a digital wallet provider for Indian citizens, and it allows users to make all types of transactions, including money transfers and bill payments. The app was first launched in 2010 by Vijay Shekhar Sharma, and now it has more than 150 million registered users.
The growth of India’s e-commerce industry has led to the rise of start-ups like Paytm. It all started with the Indian Prime Minister Narendra Modi’s demonetisation that led to a cash crunch. The Paytm app was launched ten years ago with a vision to empower people by efficiently providing financial services. The company has been growing exponentially ever since. It has achieved over 100 million offline transactions and 10 million online transactions per month in the past five years alone. The company’s growth has been steady and has been attracting a lot of users. It is now considered one of the top contenders in the world of mobile payment apps. When Paytm was launched, it was running as a loss-making company. But with 19 million transactions per day and over 50% market share in India’s mobile wallet industry, the company is now valued at $3 billion.
27% loss in the first trading
Even though Paytm is one of the top online digital wallet service providers, one of the latest trading series of IPO lost more than 27%. Paytm is backed by Alibaba and Paytm. The firm was aiming for a $20 billion valuation, and however, the expectation did not match. Apart from Paytm, a wide range of other Indian start-ups were listed in the IPO trading list, such as Zomato, Nykaa, Plicybazaar and a few others. Paytm has shown a pretty disappointing performance on the first day of IPO trading compared to these peers. However, several other larger industry executives have stated that the one-day performance of Paytm cannot predict or measure the success rate of Paytm. The company offers a wide range of services such as digital banking, peer-to-peer payments, and many others and has wide support from its consumer.
Vijay Shekhar Sharma, CEO of Paytm, has stated that the support from the industry and comprehensive positive response from the consumers have been the key to the company’s success. However, even after receiving the green light, it was not easy for the company to reach its peak of success. Even in the current market, Paytm is continuously competing with some of its quite competitive rivals, such as PhonePe and Google Pay.