Paytm (One 97 Communications) Stocks Updates and Reference

Before we get to business model, see the valuation ladder where owners keep valuing their own property & higher rates.
But there is a catch here – Paytm seems to have got the last funding in 2019 at $ 16 Bn valuation. On that, the current pricing at $ 20 Bn seems fair, isn’t it? pic.twitter.com/cCsIkpckiF

— Anurag Singh (@anuragsingh_as) November 8, 2021

So here we are. #PaytmIPO asking Rs 18,300 Cr ($ 2.5 Bn) valuing the company at 1.5 lac Cr ($ 20 Bn). That puts Paytm in the league of top 25 cos, well almost.
If Paytm doubles from here, it will be bigger than Axis bank & close to Kotak bank.“Super app” bigger than these banks? pic.twitter.com/lqNBVsDoJP

— Anurag Singh (@anuragsingh_as) November 8, 2021

You’ll say, well #Paytm has potential…..right ? Well, the revenue is all of Rs ~3200 Cr & has stayed stagnant since FY19. Also almost entire loss reduction (Rs 1500 Cr loss in FY’21) comes from reducing promotional expenses. (Remember 2020 planned listing) pic.twitter.com/FgFDu2ddOC

— Anurag Singh (@anuragsingh_as) November 8, 2021

But we need to dig more on revenue sources. #Paytm is largely in 2 clusters – Financial services & eCommerce. Revenues from payments (& fin svcs) grew, albeit at 33% for last 2 yrs whereas “eCommerce & cloud” biz is falling substantially, indicating that this segment is declining pic.twitter.com/EUIBIguVnO

— Anurag Singh (@anuragsingh_as) November 8, 2021

What was “eCommerce & cloud” biz? Remember Paytm Mall eCommerce biz which was to take on Flipkart & Amazon?
Then there is ticketing biz, again trying to compete with the biggies already established in ticketing. We see new segments tried & folded without significant leadership pic.twitter.com/WSPHFIb0sP

— Anurag Singh (@anuragsingh_as) November 8, 2021

Sometime in 2020, Paytm decided to be a financial super app v/s competing on eCommerce. It earns brokerage fee from banks/NBFC/Insurers for loans, cards, insurance, etc. In a captured space, it is just new entrant. As quoted “financial svcs revenue is small % of our revenue” pic.twitter.com/CIfbYNdUzD

— Anurag Singh (@anuragsingh_as) November 8, 2021

Sometime in 2020, Paytm decided to be a financial super app v/s competing on eCommerce. It earns brokerage fee from banks/NBFC/Insurers for loans, cards, insurance, etc. In a captured space, it is just new entrant. As quoted “financial svcs revenue is small % of our revenue” pic.twitter.com/CIfbYNdUzD

— Anurag Singh (@anuragsingh_as) November 8, 2021

Do you want to pay for yet another shot at diversification in spaces that are crowded, given failed experiments ? How much can an app cross-sell?
While industry is worried with too many stocks trading accounts, Paytm has barely started.What leadership execution do we value here? pic.twitter.com/PO9WA3GRMg

— Anurag Singh (@anuragsingh_as) November 8, 2021

Do you want to pay for yet another shot at diversification in spaces that are crowded, given failed experiments ? How much can an app cross-sell?
While industry is worried with too many stocks trading accounts, Paytm has barely started.What leadership execution do we value here? pic.twitter.com/PO9WA3GRMg

— Anurag Singh (@anuragsingh_as) November 8, 2021