Demonetization dust has settled and it’s been more than two years now when our present Prime Minister Narendra Modi had created history by replacing old currencies to new currencies or coins amid to combat tax evasion via "black money" held outside the formal economic system.
We can never forget that 8 November 2016 night when PM announced that big news that he withdrew all Rs 500 & Rs 1000 banknotes to curb corruption and to promote digital payments, ATMs were full of queue and people were numb how to deal with that situation. Meanwhile, Paytm was gradually establishing itself and the demonetization gave the company a sudden lift, from rags to riches everyone was paying through Paytm wallet that period, which helped the company to achieve from 120 million wallet users to 450 million approx. users until August 2019. The company’s goal to active monthly users of around 250 million users by March 2020.
According to a recent HT-Mint Asia leadership summit in Singapore, CEO Vijay Shekhar said he is planning to start for an initial public offering in the next 22-24 months. He added more that while a public listing was ‘inevitable’, he wants more cash generation before entering into the equity market. The company’s peers would be IndiaMart and Matrimony.
The journey of PayTm:
Paytm is India’s largest mobile commerce platform. Founded in the year 2010, Mr. Vijay Shekhar Shankar is the CEO of the company, headquartered in Noida, Uttar Pradesh. One97 Communication is the parent company and widely used as utility bill payments and today it provides all financial products such as payment banks and credit cards through its mobile apps. The app also supports a home towner wallet, and UPI for payments and transactions, wealth management, insurance, and gold services.
The biggest milestone is to remember when the company had raised $300 million from Berkshire Hathaway last year.
Dismal Financial Numbers: One97 Communication had reported consolidated losses to Rs 4,217 crore, up by 164% in the year ending March 2019 compared to a net loss of Rs 1,604 crore in the same period ago. While revenue stood at Rs 3,232 crore in March 2019 from Rs 3,052 crore in the previous year. The company’s total expenses nearly doubled to Rs 7,730.14 crore in FY19 from Rs 4,864.53 crore in FY18.