⛳ After IPO Fiasco, Paytm Is On The Road To Win Back Investor Trust

Indian payments giant Paytm has locked in a golden record after nearly 6 months. Shares of digital payments firms jumped more than 6% yesterday to touch their highest in nearly 6 months.

In addition, Paytm has been finding ways to win back its investors’ trust since the time its IPO become a symbol of the industry’s crash.

Lifting Revenues = Lifting Trust?

The 6-month record high revenue — from Rs.8.91 billion last year to Rs.16.8 billion this week comes after its parent firm, One 97 Communications Ltd posted an 89% surge in its quarterly revenue.

Paytm owes this to its increasing number of monthly users, additional payment devices, and more disbursal of loans.

Investors, let’s get down to business, please?

Until last week, investors were not happy with the company’s wider loss of Rs.6.44 billion posted in its quarterly update.

However, the payments competitor of Google’s Google Pay and Walmart’s PhonePe got right back on track to achieve operational profitability by September 2023.

Describing his approach as a rewind-and-reset, Founder and CEO Vijay Shekhar Sharma is on a mission to win back investors.

Once Bitten, Twice Shy

Paytm’s most grueling phase ever was when the IPO shone a light on its business model, allowing investors to more intricately scrutinize the company’s earnings logic and valuation.

Recently, the company has slashed spending and is considering an exit from a pricey cricket sponsorship. It is also likely to terminate its acquisition agreement with insurer Raheja QBE General Insurance.

“Earlier the team used to be like, ‘Cricket sponsorship? that’s so cool!’ to now, ‘How much money can we save if we gave that up?’” the CEO said.

Seems like someone’s cutting corners.

Too long? Here’s a one-liner: Paytm records a 6-month high quarterly revenue of Rs.16.8 billion, but investor trust still looks bleak with widening losses after the IPO fiasco.