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India’s Biggest Fin-Tech Business-Rise and Fall

In today’s Blog we will take a closer glance at the rise and fall of the biggest Fin-Tech Business of India Paytm


  • Paytm, which stands for “Payment Through Mobile,” is India’s largest installment, trading, and e-wallet venture. It was founded by Vijay Shekhar Sharma in 2010 and is a brand of the parent company One97 Communications.com. It began as an online portable energy site before transitioning to a virtual and commercial centre bank model.


  • Paytm has grown into an Indian behemoth, handling mobile payments, banking administrations, a commercial centre, Paytm gold, energise and charge instalments, Paytm wallet, and a slew of additional services for over 100 million customers.


  • More than 7 million traders in India use the organization’s QR code to receive payments directly into their bank accounts, according to the group. 


  • Paytm’s upgrade has established a good reputation and has been praised by those in the online instalment business. One of its increasingly important achievements is its collaboration with Alibaba, the Chinese web-based business Goliath, to provide massive subsidie


  • Paytm’s primary focus is on supporting its Indian customer base, particularly cell phone users. Many Indian customers perceived the digitised world as a way to create a financial account. Accessing basic online instalments fell short, leaving customers with nothing but a bad experience. Paytm seems to be a better solution for dealing with such scenarios.


  • Paytm’s client service is available 24 hours a day, seven days a week. Simultaneously, the great part of Paytm administrations are self-serve and accessible through their basic interface.

Paytm's Business Channel

Paytm attracts customers through a variety of means. Aside from its own website, which drives traffic, Paytm has built relationships with a variety of consumers and seller sites to help it succeed. In India, demonetization allowed the company to prosper on all fronts and get new clientele.

Paytm Wallet

Paytm wallet is one of Paytm’s most useful features, since it establishes a link between the bank and the shops. This semi-closed wallet allows you to manage your bills, pay for your tickets, or pay anybody. Paytm wallet, which has been approved by the RBI, offers the benefit of receiving excitement for a buyer shop, similar to certain other Payment Gateways. When you save a specified amount of money in your Paytm wallet, it will transfer that money to another bank, from which it will ultimately get interest.

Mobile Recharge Business

  • Paytm’s primary goal since its inception in 2010 has been to provide online portable recharging services. Its ability to generate revenue was always limited. Paytm’s management rules are just as commendable and effective as those of other telecom specialised cooperatives ranging from Airtel to Idea.


  • The administrations are faultless and provide comfort to their consumers. Paytm currently increases a fee of 2-3% per energise. Paytm has more grounded power in dealing than other merchants because of its assistance for its clients to keep reviving via its foundation. That is why it receives such a large commission. This commission from its resurrected administration serves as its source of income.


  • These administrations have mostly assisted the organisation in expanding its base and, as a result, growing rapidly. When the client is satisfied with the service or product, he proceeds to a comparable venture in this manner. Paytm is able to maintain its client base while while increasing traffic. Paytm has successfully applied this process to maximise its potential advantage and continues to see great outcomes.

Paytm Digital Gold

  • Paytm has promoted “Computerized Gold” as a result of its partnership with MMTC-PAMP, a leading gold purifier. Clients can use this model to sell, buy, or keep gold at an advanced level. Clients must now pay a fee merely to have their gold delivered to their family.


  • Paytm is well aware of how much gold is used as a resource in India and is well prepared to capitalise on this opportunity. The company has made elaborate measures to encourage its customers to open their own Gold Bank Accounts. This record will provide customers easy access to different Paytm administrations in addition to enabling them to acquire gold.

Paytm Mall

  • Paytm launched its Paytm Mall app in February 2017, allowing users to shop from 1.4 lakh registered retailers. Paytm Mall is a B2C concept inspired by TMall, China’s largest B2C shopping platform. To ensure customer confidence, things must transit through Paytm-guaranteed stockrooms and networks for the 1.4 lakh merchants that have signed up.


  • Paytm Mall has built up 17 fulfilment centres all around India and partnered with more than 40 messengers. In March 2018, Alibaba Cluster and SAIF Partners invested $200 million in Paytm Mall. In May 2018, it reported losses of over Rs 1,800 crore and revenues of Rs 774 crore for the fiscal year 2018. Furthermore, Paytm Mall’s share of the pie fell to 3% in 2018 from 4% in 2017.

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Why did Paytm IPO Flop on its Market Debut?

  • Paytm’s initial public offering (IPO) took place in November of last year, and it was a massive IPO. Investors from all across the world were ecstatic. It was India’s largest initial public offering (IPO) in the country’s history. Coal India has already raised almost 15,000 crores. Paytm went public in order to raise 18,000 crores of rupees. Unfortunately, Paytm’s first public offering (IPO) failed to take off right after it was listed.


  • Paytm has been a loss-making business for quite some time. It isn’t making any money at all. In FY 2019, the startup lost over 4000 crore. In FY 2020, it increased to 3000 crore, and then to 7000 crore in FY 2021.


  • On November 10, 2021 17:00, the Paytm IPO was only 1.89 times subscribed. The retail sector received 1.66 subscriptions, 2.79 in the QIB category, and 0.24 in the NII category. It indicates that investors were either uninterested in it or that the IPO was so large that it simply met all of the demand.


  • The following are some of the most commonly observed and predicted factors for Paytm’s depreciation.

Overall Market Conditions

  • The present market conditions are also having an impact on the IPO. The present market conditions are indicating a negative trend.


  • The key reason for the Sensex’s downward trend is Reliance’s 4.4 percent drop after it announced a review of a recent agreement. Inflationary pressures are growing outside of India and over the world, as are Covid instances in Europe. All of these actions have influenced Paytm’s negative trajectory in some way.

Paytm’s Financial Situation

  • Paytm will not be profitable anytime soon; the profitability game is still a long way off. 


  • Another reality is that freshly listed firms are currently attempting to be extremely savvy since they are aware of the market’s high retail involvement. Many individuals would seek listing benefits, therefore Paytm launched a massive IPO worth 18,000 crores. 

Size of the IPO

When supply is limited and demand is high, listing profits occur. In other words, listing profits are predicted when the offering is minimal. In the case of Paytm, the IPO is so large that it completely meets total demand, leaving no room for a force to push the price up.

A Walk Through History Of Paytm


Founded by Vijay Shekhar Sharma in Noida



Began as a prepaid portable and DTH revitalise stage, but eventually expanded to other areas as well.



Facilitated tickets for  movies, events, and entertainment hotspots and Paytm QR.


Paytm became India’s first instalment application to traverse 100 million application downloads. 



It started allowing merchants to accept Paytm UPI and card payments directly into their bank accounts at a 0% fee.



Paytm went public in order to raise 1800 Crore

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