Paytm is an Indian e-commerce payment system and digital wallet company. It was founded by Vijay Shekhar Sharma in August 2010 and is based out of Delhi NCR, India. Paytm is available in 10 regional languages and offers online use-cases like mobile recharges, utility bill payments, travel, movies, and events bookings as well as in-store payments at grocery stores, fruits and vegetable shops, restaurants, parking, tolls, pharmacies and education institutions with the Paytm QR code. As of January 2018, Paytm is valued at $10 billion.
|Type of business||Private|
Type of site
|Headquarters||Noida, Uttar Pradesh,India|
|Founder(s)||Vijay Shekhar Sharma|
|Key people||Vijay Shekhar Sharma (founder)
Renu Satti (CEO)
|Services||Online shopping, payment systems, digital wallets|
|Revenue||₹814 crore (US$120 million) (FY 2017)|
|Parent||One97 Communications Ltd .|
Today over 7 million merchants across India use this QR code to accept payments directly into their bank account at 0% fee. The company has also launched the ‘Paytm for Business’ app in over 10 regional languages, allowing these merchants to track their payments and day-to-day settlements conveniently.
In August 2015, the Reserve Bank of India granted 'in-principle' approval for Payments Bank to Paytm. In 2017, the company launched the Paytm Payments Bank with the aim to bring banking and financial services access to half-a-billion un-served and under-served Indians.
The same year, Paytm launched an app for Canadian mobile phone, cable, Internet, electricity and water bill payments. In 2018, it set up Paytm Money to build investment and wealth management offerings for its users. This business will bring direct mutual funds and money-market funds to the Indian masses.
Paytm was founded in August 2010 with an initial investment of $2 million by its founder Vijay Shekhar Sharma. It started off as a prepaid mobile and DTH recharge platform, and later added data card, postpaid mobile and landline bill payments in 2013.
By January 2014, the company launched the Paytm Wallet, and the Indian Railways and Uber added it as a payment option. It launched into mobile commerce with online deals and bus ticketing. In 2015, it unveiled more use-cases like education fees, metro recharges, electricity, gas, and water bill payments. It also started powering the payment gateway for Indian Railways.
Paytm's registered user base grew from 11.8 million in August 2014 to 104 million in August 2015. Its travel business crossed $500 million in annualised GMV run rate, while booking 2 million tickets per month.
In 2017, Paytm became India's first payment app to cross over 100 million app downloads. The same year, it launched Paytm Gold, a product that allowed users to buy as little as ₹1 of pure gold online. It also launched the Paytm Payments Bank and ‘Inbox’, a messaging platform with in-chat payments among other products. By 2018, it started allowing merchants to accept Paytm, UPI and Card payments directly into their bank accounts at 0% charge. It also launched the ‘Paytm for Business’ app, allowing merchants to track their payments and day-to-day settlements instantly. This led its merchant base to grow to more than 7 million by March 2018.
The company launched two new wealth management products - Paytm Gold Savings Plan and Gold Gifting to simplify long-term savings. It launched into gaming and investments, partnering with AGTech to launch a mobile games platform Gamepind, and setting up Paytm Money to bring investment and wealth management products for the Indian masses.
In March 2015, Paytm received its funding from Chinese e-commerce company Alibaba Group, after Ant Financial Services Group, an Alibaba Group affiliate, took 25% stake in One97 as part of a strategic agreement.
Investments and acquisitionsEdit
In 2015, Paytm invested $5 million in auto-rickshaw aggregator and hyperlocal delivery firm Jugnoo. The funds were meant to enable Jugnoo to scale up its operations across the country, and improve its driver efficiency. It also acquired Delhi-based consumer behaviour prediction platform Shifu and local services startup Near.in.
In 2016, Paytm invested in logistics startups LogiNext and XpressBees.
In April 2017, Paytm invested in healthcare startup QorQL which uses artificial intelligence (AI) and big data to help doctors improve their productivity and quality of care, and enable patients to manage their health better. In July 2017, it acquired a majority stake in online ticketing and events platform Insider.in, backed by event management company Only Much Louder (OML) and mobile loyalty startup MobiQuest. The same year, Paytm acquired Little & Nearbuy, and merged both.
In July 2015, One97 Communications, the firm that owns the brand Paytm, acquired the title sponsorship rights for India's domestic and international cricket matches at home for a period of four years starting in August 2015. The rights include sponsor branding of series with the title sponsor logo, designation as the title sponsor of the series, visibility at the stadium, and broadcast sponsorship rights. This also includes all BCCI domestic (Ranji Trophy, Duleep Trophy etc.) matches in India.
Previously, Paytm had acquired sponsorship rights during the 8th season of Indian Premier League. It has also served as an associate sponsor on Sony TV network (which has the telecast rights for IPL) and was the official partner of the IPL team Mumbai Indians. In March 2018, Paytm became the Umpire Partner of the IPL for five years.
Paytm Payments BankEdit
In August 2015, Paytm received a license from Reserve Bank of India to launch a payments bank. The Paytm Payments Bank is a separate entity in which founder Vijay Shekhar Sharma will hold 51% share, One97 Communications holds 39% and 10% will be held by a subsidiary of One97 and Sharma. The bank was officially inaugurated in November 2017 by the Indian Finance Minister, Arun Jaitley. The inauguration ceremony featured prominent banking personalities including former RBI Executive Director PV Bhaskar, Saama Capital Director Ash Lilani and former Shriram Group Director GS Sundarajan. Vijay Shekhar Sharma and Renu Satti (CEO – Paytm Payments Bank) are the other directors of Paytm Payments Bank.
In January 2018, Paytm Payments Bank partnered with IndusInd Bank to offer a super-liquid, linked fixed deposit with up to 6.85% annual interest. It is set to launch over 100,000 banking outlets across India by end of 2018.
Awards and recognitionEdit
- Diamond SABRE Award in Company of the Year at SABRE Awards 2017
- Diamond SABRE Award in Superior Achievement In Reputation Management at SABRE Awards 2017
- Gold SABRE Award in Financial Professional Services at SABRE Awards 2017
- Best Digital Wallet award at the 11th IAMAI India Digital Summit
- Best Consumer Mobile Service award at the 11th IAMAI India Digital Summit
- ET Brand Equity Most Trusted Brand of the Year 2016
- FT Future of Fintech Award in 2016
- Outstanding Startup of the Year Award at Forbes Leadership Awards 2016
- Mobile Wallet Provider of the Year award in the B2C category at the Frost & Sullivan Awards Ceremony
- ET Telecom Game Changer of the Year Award, 2015
- Gold in Mobility Solutions Category and Silver in E-commerce category at the 2015 Express IT Awards
- Gold in E-commerce at the 2015 Indian Marketing Awards
- Disruptive Digital Innovator Award at NDTV Digitzing India Awards
- Most Innovative Company of the Year 2014 Award at Business Standard Awards
- Best Digital Wallet Award at IAMAI’ India Digital Awards in Delhi on 15 January 2015
- Paytm recognized as the ‘Most Innovative Startup of the Year’ at the 2012 Entrepreneur India event by Franchise India
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- Paytm revenue stood at Rs 814 crore in FY17
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- "We have set up Paytm Money to focus on Investment and Wealth Management". Paytm Blog. 2018-01-10. Retrieved 2018-04-07.
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- Chanchani, Madhav; Variyar, Mugdha (2017-05-19). "Paytm raises $1.4 billion from Softbank, valuation jumps to over $8 billion". The Economic Times. Retrieved 2018-04-07.
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- "Paytm to replicate Alibaba's logistics strategy with LogiNext". @businessline. Retrieved 2018-04-07.
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- "Nearbuy and Little merge to create India's largest discovery and deals platform for local…". Paytm Blog. 2017-12-06. Retrieved 2018-04-07.
- Malvania, Urvi (2015-07-31). "Paytm bags 4-yr BCCI title sponsorship for Rs 203 cr". Business Standard India. Retrieved 2018-04-07.
- "BCCI Announces Paytm as Official Umpire Partner for IPL". News18. 2018-03-12. Retrieved 2018-04-07.
- "Paytm Payments Bank Partners With IndusInd Bank To Offer Fixed Deposit Facilities". Inc42 Media. 2018-01-08. Retrieved 2018-04-07.
- "Paytm Payments Bank to open 100,000 Paytm Ka ATM outlets, set to invest Rs 3,000 cr". The Financial Express. 2017-12-05. Retrieved 2018-04-07.
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