On a consolidated basis, the company’s loss widened to 42.17 billion rupees ($588 million), as against 16.04 billion rupees ($224 million) in the year-ago period, as per the annual report it supplied to its shareholders, Times of India reports. In the fiscal year that ended March 2019, Paytm’s parent One97 Communications Ltd had nearly tripled its losses. However, of late, it has been facing stiff competition from Google Pay and Walmart’s PhonePe and that is taking a toll on Paytm’s finances.
It also attracted funding from prominent venture capitalists such as Alibaba’s Ant Financial and SoftBank’s Vision Fund, and the company is currently valued at around US$ 15 billion. When the Narendra Modi Government banned high-value currency notes in November 2016, that led to a spike in usage of cashless alternatives, including mobile wallets, which benefitted Paytm.
(Photo: Nitin Sonawane/ET) For Yashish Dahiya and Alok Bansal, their 13-year journey of building Policybazaar as India’s largest insurance marketplace started even before they launched the company. By March 2018 its merchant base was more than seven million. Alok Bansal and Yashish Dahiya, cofounders of Policybazaar. Like our charts? Explore example interactive dashboards and create your own.Founded in 2010 as a prepaid mobile and direct-to-home recharge platform, Paytm has now extended its services to areas such as payments bank, insurance, insurance broking, travel ticketing, and mobile wallet services. You can modify any of our assumptions and estimates for Paytm and gauge the impact of changes on One97’s valuation. However, given that the industry and region in which the company is operating is in a high-growth stage, if Paytm is able to stay ahead of competitors and maintain its growth momentum, it could maintain its relatively high revenue multiple. Based on our base case, Paytm’s valuation could reach about $20 billion. Our base case scenario assumes that Paytm’s multiple will decline to 20x in 2019 as the company achieves some of its growth milestones and future growth slows down. Strong Growth Prospects Can Lead To Significant Upside In Valuationīased on One 97’s revenues for 2018 and its valuation based on its latest funding round, the company commands a revenue multiple of 25x. Falling expenses indicate that the company is on a path towards profitability however, as it targets significant growth in the next few years, the company is unlikely to focus on profitability in the near term.
Paytm’s losses as a % of revenue have declined over the years, as the company’s expenses on advertising and promotion decline and it enjoys operating leverage. You can modify this number by clicking on the blue dots on our dashboard. Aman who owns an open stall in Nehru place selling mobile phone covers and. Both these players are likely to emerge as strong competitors for Paytm, which currently has a lead with 300 million registered users and 120 million monthly active users of its in-app messaging service.īased on these growth parameters and Paytm’s internal goal to double the transactions on its platform, we forecast a base scenario of 100% revenue growth for Paytm for fiscal year 2019 and an aggressive growth scenario of 200% growth. In this section, we attempt to discuss and locate PayTM, specifically. Google Payments in India has seen 750 million transactions since its launch in late 2017, and WhatsApp boasts a user base of more than 200 million active users in India. However, with Google and WhatsApp launching a payments platform in India, Paytm is likely to face strong competition going forward. This is more than double its GTV in 2018.įurther, the digital payments economy is set for a very high growth in India, and is likely to reach $1 trillion by 2023 from $200 billion in 2018. The company is likely to generate a gross transaction volume of $50 billion in 2019 based on its half-year numbers. We expect strong revenue growth to continue over the next few years as One97 focuses on expansion and improving its platform. The factors have contributed towards the company’s strong revenue growth. The value of transactions on its platform has also increased by more than 50%. The company increased the number of merchants on its platform from 1 million in the beginning of 2017 to 7 million by March 2018, and also launched its mobile app in multiple languages, appealing to the diverse population in India – consequently driving growth. This growth can be partly attributed to government policies in India promoting digital payments, as well as Paytm’s efforts to bring a wide range of payments such as traffic fines and highway tolls on its platform. With more than 150% growth in transactions between April 2017 and March 2018, the company is now aiming to double its transactions over the next fiscal year (ending March 2019). Paytm has witnessed strong growth in the number of transactions in the last two years.
0 kommentar(er)
