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

Himaya Presthitha Himaya Presthitha
Apr 27, 2021 5 min read
Paytm - Rules the World of Digital Transactions with its Simple and Secured Payments

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Nearly 1.7 million people in the world are unable to engage in the formal financial system. This imposes adverse effects on saving and investments. Cash-based transactions lack transparency and are also typically unsafe.

Paytm brought about a huge transformation in digital transactions. The company encourages pay through mobile with its famous tagline 'Paytm Karo'. The company was founded in 2010 and it is based in Noida, Uttar Pradesh. Here is a detailed description of the successful journey of the company.

Paytm โ€“ Company Highlights

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

Paytm โ€“ About
Paytm โ€“ Latest News
Paytm โ€“ Founders and Team
Paytm โ€“ Vision and Mission
Paytm โ€“ Name, Tagline, and Logo
Paytm โ€“ Awards
Paytm โ€“ Growth and Revenue
Paytm โ€“ Funding and Investors
Paytm โ€“ Business and Revenue Model
Paytm โ€“ Competitors
Paytm โ€“ Future Plans
FAQ

Paytm โ€“ About

Paytm is a leading financial services company that offers various financial solutions to its customers through both offline and online platforms. Paytmโ€™s parent organization is One97 Communications which is based in Noida, Uttar Pradesh.

This was founded by Vijay Shekhar Sharma. 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). Paytm First Games and Paytm Insurance have also gathered the usage of millions of people globally.

Paytm โ€“ Latest News

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.

Vijay Shekhar Sharma tweeted that Paytm had announced a UPI CashBack Campaign for which the app got pulled down. The app was back on the Play Store with the support of people stating that CashBack and Scratchcards are not gambling.

Paytm โ€“ Founders and Team

Vijay Shekhar Sharma is the founder and CEO of Paytm. He completed his Bachelors in Electronics and Communications Engineering from Delhi College of Engineering. He was ranked as Indiaโ€™s youngest billionaire in 2017. He started One97 Communications in 2000, which is the parent organization of Paytm. He also got โ€œCEO of the Yearโ€ by SABRE Awards in the year 2015. Now, Paytm operates with more than 20,000 employees.

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

Paytm โ€“ 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. 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 โ€“ 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 โ€“ Growth and Revenue

Paytm faced a huge loss in its revenue during FY 2018-19. As of 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 in November 2019 with T Rowe Price being the investor. This led the total valuation of the company to rise to $16 Billion.

Paytm โ€“ Funding and Investors

Date Stage Amount Investors
January 2014 Series A - -
February 2015 Private Equity Round - -
March 2015 Secondary Market - -
February 2017 Funding Round $2.2B Vijay Shekhar Sharma
November 2019 Series G $1B T Rowe Price

Paytm โ€“ Business and Revenue Model

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

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 โ€“ Competitors

The top competitors of Paytm include PayPal, FreeCharge, Flipkart, Razorpay, MobiKwik, and Ant Financial. Paytm proves to be the best in its field with its advanced technologies and strategic business models.

Paytm โ€“ Future Plans

The three main focus areas of the company are financial services, 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 is aiming to reach 100 million users in the upcoming T20 league and is planning to invest Rs.300 Crore in branding and marketing.

FAQ

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.

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