Paytm - Rules the World of Digital Transactions with its Simple and Secured Payments

Himaya Presthitha Himaya Presthitha
Sep 18, 2021 10 min read
Paytm - Rules the World of Digital Transactions with its Simple and Secured Payments

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Paytm.

Making bill payments and paying shops and other individuals are really essential in our day-to-day lives. The handling of cash was the only way to make such payments. However, the rapid expansion of markets, widening of our daily needs, and the prevailing digital drive have proved the loopholes of cash-based transactions and established online money transactions as promising alternatives. Besides, cash-based transactions have largely grown to be unsafe and lacking in transparency. Furthermore, with the onset of the coronavirus pandemic, cash transactions are also deemed quite vulnerable.

Digital transactions have already received a major boost during the demonetization followed by the Covid-19 pandemic along with the large-scale digitalization drives across the country. Paytm is one of the oldest digital payment apps, which has brought about a watershed moment in the history of payments in India. The company encourages payments through mobile with its famous tagline 'Paytm Karo.'

The company was founded in 2010 and is based in Noida, Uttar Pradesh. Here is a detailed description of the successful journey of the company.

Paytm - Company Highlights

Startup Name Paytm
Headquarters Noida, Uttar Pradesh
Industry FinTech
Founders Vijay Shekhar Sharma
Founded 2010
Parent Organization One97 Communications
Website www.paytm.com
Tagline Paytm Karo

Paytm - About
Paytm - Latest News
Paytm - Founders and Team
Paytm - Vision and Mission
Paytm - Name, Tagline, and Logo
Paytm - Awards
Paytm - Growth and Revenue
Paytm - Funding and Investors
Paytm - Business and Revenue Model
Paytm - Competitors
Paytm - Future Plans
FAQs

Paytm - About

Paytm is a leading financial service and bill payments app that offers financial solutions to its customers, mobile, DTH recharge facilities, and more through its platform. Paytmโ€™s parent organization is One97 Communications, which is based in Noida, Uttar Pradesh.

Paytm was founded by Vijay Shekhar Sharma in 2010. The platform was initially designed to cater to the merchants and the customers to help them send and receive money online. The company rapidly grew popular and expanded to include wallet services, e-commerce facilities, and more to make life easier for the Indians.

Paytm Payments Bank is said to be the countryโ€™s largest digital bank with more than 58 million account holders. โ€˜Paytm Moneyโ€™ is regarded as the biggest investment platform and contributes to Systematic Investment Plans (SIP) in the Mutual Funds Industry.

It has also gained access to launch its services in Stock Broking, and National Pension System (NPS). Furthermore, Paytm First Games and Paytm Insurance have also gathered the usage of millions of people globally. Besides, Paytm also launched a mini app store to support Indian app developers and entrepreneurs.

Paytm - Latest News

September 9, 2021 - Paytm Money, a wholly owned subsidiary of Paytm launches โ€˜WealthBasket,โ€™ a wealth and advisory marketplace designed to offer curated advisory products and services for the retail investors of the country.

September 9, 2021 - Paytm sees Ajay Shekhar Sharma, brother of Paytm CEO, Vijay Shekhar Sharma, as the CBO (Chief Business Officer).

14 June, 2021 - Paytm announced that users from all over the country will now be able to find their Covid-19 vaccination slots and book them right from the Paytm app.

Paytm Vaccine Finder

26 August 2021 - Paytm declares to allot equity shares amounting to Rs 189 crores to 166 of its present and former employees.

14 June 2021 - Paytm unveils stock options amounting to $12 Million and started its employee reward policy through its employee stock ownership plan (ESOP), which is made available for the existing and former employees.

18 September 2020 - Paytm First Games has been suspended from the Google Play Store for violating its policies. It is said that Google does not allow online casinos or support any unregulated gambling apps that facilitate sports betting.

18 September 2020 - Vijay Shekhar Sharma tweeted that the Paytm app is back live on Play Store with the support of the people and stated that CashBack and Scratchcards are not gambling. The ban that was put into effect earlier by Google Playstore on the app on the grounds of violating the company's rules around gambling was lifted later on.

Paytm - Founders and Team

Vijay Shekhar Sharma is the founder and CEO of Paytm. Sharma is counted among the top digital entrepreneurs in India. He was ranked as Indiaโ€™s youngest billionaire in 2017 by Forbes when his net worth was calculated at $1.3 billion. He is also a recipient of the highest civilian honor of the Government of Uttar Pradesh, Yash Bharati. He was also featured in In 2020, he was ranked as the #62nd richest person in India

Vijay was born in a middle-class family in Aligarh and was naturally good in academics, owing to his father being a school teacher. Though he was a bright student, he was schooled in a Hindi medium school and soon realized his weakness in English during his college admissions. However, Vijay didn't yield to it and confronted and conquered his fears most dauntingly. He was later admitted to the Delhi College of Engineering from where he earned his Btech in Electronics and Communications Engineering.

The entrepreneurial itch was always in him. Vijay developed indiasite.net while he was still in college in 1997 to start with his entrepreneurial journey. After 2 years, he sold his website for $1 million but only to scale new heights as an entrepreneur. He founded One97 Communications in 2000 to offer mobile news content, ringtones, jokes, cricket scores, and exam results. This company later became the cradle of Paytm, which he started in 2010 with an initial investment of $2 million in Noida.

Vijay Shekhar Sharma - Founder of Paytm
Vijay Shekhar Sharma - Founder of Paytm

Paytm has operated with an efficient team that has progressed with the growth of the company. However, not all of them have remained with the company. Yes, the company, much like the others, has seen quite a number of employees quitting the firm. Amit Nayyar, who served as a President for 20 months, was the latest to leave the company on July 9, 2020. According to sources close to Nayyar, he has put down his papers due to personal reasons. The resignation of Rohit Thakur was the last known top-level resignation of Paytm.

Paytm - Vision and Mission

Paytmโ€™s goal is to enhance digital excellence, increase earning growth, and cross-selling opportunities. The company also wants to leverage its capabilities and value propositions to increase its market position. Furthermore, Paytm wants to bring half a billion Indians into the mainstream economy through their financial services.

Paytm denotes โ€˜Pay through Mobileโ€™, representing the digital transactional services of the company. The companyโ€™s tagline is โ€˜Paytm Karoโ€™.

Paytm Logo
Paytm Logo

Paytm - Awards

Year Awards
2012 Paytm got the โ€˜Most Innovative Startup of the Yearโ€™ Award from Franchise India
2013 The company was recognized by Knowledge Fabre Best Mobile Wallet Program Award
2014 โ€˜Gold Winnerโ€™ at the MMA Smarties under the category of Mobile App. Paytm was the winner of the Indian Express IT Award
2015 The company got the Best Digital Wallet Award at IAMAI India Digital Award in Delhi
2016 Paytm was the winner of the FT Future of Fintech Award. It also won ET Brand Equity Most Trusted Brand of the Year
2017 Paytm was awarded the Diamond SABRE Award in Company of the Year at SABRE Awards. The company also won Best Consumer Mobile Service Award at the 11thIAMAI India Digital Summit

The Story of Vijay Shekhar Sharma: From Hindi Medium to Building a Silicon Valley!
The Indian startup circuit has witnessed many astounding stories. The growth ofmany multinational companies has added to its worth and value as an ecosystemwhere everyone gets an opportunity to shine and rise. With the new eraapproaching, it is time to have a sneak-peek into one of the most succeโ€ฆ

Paytm - Growth and Revenue

Paytm faced a huge loss in its revenue during FY 2018-19. In the fiscal year 2019, the company saw only a 2% hike in revenue, while its expenses increased by 54%.

Paytm Payments Bank Limited stated that its net profit in FY 19-20 grew to Rs 29.8 Cr from Rs.19.2 Cr in the previous year, amounting to a growth of 55%. Paytm's FY20 revenue increased to Rs 3,629 Cr with a 40 percent reduction in losses as compared to the last year.

Paytm had its latest Series G round of funding from the investor "T Rowe Price" in November 2019. This led the total valuation of the company to rise to $16 Billion.

The total income of Paytm, which was recorded at Rs 3,540.8 crore in FY20, has dropped to Rs 3,186.8 crore in FY21. This sudden drop in the income of the Fintech giant can be traced to the reduced commercial activities as a result of the pandemic-induced lockdowns.

Paytm has already filled its DHRP where the company announced that it would be raising an amount of Rs 16,600 crores through IPO. The company further aims to make a new subsidiary out of the payments aggregator business that it manages. This new subsidiary will reportedly be called Paytm Payments Services Limited. The deadline to adhere to the RBI's payment aggregator rules is closing in on Paytm, which is looking to hold an extraordinary general meeting to announce the establishment of its new subsidiary, which is currently pending approval from its shareholders. ย 

Paytm - Funding and Investors

Date Stage Amount Investors
November 2019 Series G $1B T Rowe Price
February 2017 Funding Round $29.64 mn Vijay Shekhar Sharma
March 2015 Secondary Market - -
February 2015 Private Equity Round - -
January 2014 Series A - -

The company has amassed funding around $3.54 billion over more than 15 rounds.

Paytm announced that it has allotted around 10,11,582 equity shares worth Rs 189 crores to 166 of its former employees and current employees who had successfully submitted their applications to exercise the options vested to them under ESOP Scheme 2008 and ESOP Scheme 2009.

Paytm has declared that the last date of converting the ESOPs to shares for their employees (Key Management Personnel) is September 22, 2021, and that for the "Designated Persons" is September 27, 2021. The country's leading merchant aggregators and digital payments platform have recently increased their ESOP pool to 61 mn, which was 24 mn earlier, and more than 200 employees have already got their ESOP's converted to shares. ย  ย 

Paytm - Business and Revenue Model

The business model of Paytm includes marketplace and payments bank business model. The revenue sources for the company are divided into several categories such as Marketplace (Paytm Mall), Recharge Services, Bill Payments, Payment Solutions, Paytm Wallet, Paytm Bank, and Digital Gold for digital gold investment.

Revenue from Marketplace includes fees and commissions from sellers in different categories. Paytm charges commissions from mobile operators for revenue through recharge services. Paytm Wallet is used for almost every digital transaction. The more we use its Wallet, the more Paytm earns from it.

Paytm launched "Wealth Basket," which is designed to work like wealth and advisory marketplace on the Paytm Money platform, a subsidiary wholly owned by Paytm. Wealth Basket is designed to offer curated advisory products and services for retail investors.

Through this new launch of wealth advisory services, Paytm aims to be the new super app for users to invest and grow their wealth wisely. To materialize this plan Paytm has already partnered WealthDesk, an investment tech startup. However, experts are of the opinion that Paytm is entering into a market that already seems quite saturated, having 400+ investment tech startups. The same market is also expected to reach a valuation of $14.5 Bn by 2025 surging at a CAGR of 22.4%, as per the reports dated September 9, 2021.

Paytm - Competitors

The top competitors of Paytm are:

Paytm proves to be the best in its field with its advanced technologies and strategic business models.

Paytm - Future Plans

The three main focus areas of the company are financial services, e-commerce, and payments. Paytm plans to invest Rs 10,000 Crore ($1.4 B) over the next three years. The investment will mainly focus on expanding its financial services. Paytm aimed to reach 100 million users in the T20 league and is planning to invest Rs 300 Crore in branding and marketing. The leading digital payments provider, plans to launch Indiaโ€™s biggest IPO this year. It is aiming to raise $3 billion in an initial public offering (IPO) this year.

Fast forward to July 5, 2021, Paytm has reported that its IPO will be worth Rs 2.23 billion (Rs 16,600 crores). The company is to file its Draft Red Herring Prospectus with SEBI (Securities and Exchange Board of India) on the upcoming July 12 of this year.

Paytm has already filed its DRHP on July 16, 2021, with Indian markets regulatory commission SEBI, where the company has announced to raise Rs 16,600 crores through its initial public offering, which is deemed to be the biggest IPO that the country has ever seen. The company declared that its primary share sales or fresh issuance would consist of Rs 8,300 crores, whereas the remaining amount, Rs 8,300 crores would stand as an offer for sale where the existing shareholders of the company will sell their shares.

FAQs

Who is the current owner of Paytm?

Paytm is owned by the Indian company One97 Communications Ltd.

Is Paytm a Chinese company?

Paytm is a Indian company, but one of its major investor is Ant Financial, which is a Chinese major investor.

Why was Paytm banned?

Paytm was banned from Play Store for allegedly violating its gambling policies.

Is Paytm for business free?

Yes, there are no charges for setting up your Paytm for Business account.

How many employees work for Paytm?

There are 10,625 employees in Paytm.

Must have tools for startups - Recommended by StartupTalky

Subscribe to StartupTalky

Get the latest insights delivered to you right in your inbox

Great! Next, complete checkout for full access to StartupTalky.
Welcome back! You've successfully signed in.
You've successfully subscribed to StartupTalky.
Success! Your account is fully activated, you now have access to all content.
Success! Your billing info has been updated.
Your billing was not updated.