Fintech Company:Paytm

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Paytm is India's biggest versatile instalments, e-wallet, and business stage. Even
though it began as an energizing stage in 2010, Paytm has changed its plan of action to
become a commercial centre and a virtual bank model. It is likewise one of the pioneers of
the cashback plan of action. Paytm has changed itself into an Indian mammoth managing
versatile instalments, banking administrations, commercial centre, Paytm gold, energize and
charge instalments, Paytm wallet and many other provisions which serve around 100 million
enlisted clients. Paytm is accessible in 11 Indian dialects and offers online use-cases as
versatile energizes, service charge instalments, travel, motion pictures, and occasions
appointments.
In-store instalments at markets, leafy foods shops, cafés, stopping, tolls, drug
stores and instructive establishments can be accessed through the Paytm QR code.One 97
Communications, the parent company of Paytm, is all set to raise its capital target of over
₹16,600 crores through an IPO that it had filed earlier in July 2021. Paytm is seeking to
raise $25 billion to $30 billion valuation post this IPO.According to the organization, more
than 7 million traders crosswise over India utilize its QR code to acknowledge instalments
straightforwardly into their bank account. The organization uses commercials and pays a
special substance to produce income.

1.Financial Statements and Records of Company:

Income Statements:
Particulars 3/31/2021 3/31/2020 3/31/2019
Total Sales (or Revenue) 28,013 32,787 32,241
Cost of Goods Sold (COGS) 39,866 44,353 39,859
including Depreciation and Amortization
Gross Income -11,853 -11,566 -7,618
SG&A Excluding Other 6,940 15,998 36,434
Other Operating Expense 592 464 450
EBIT (Operating Income) -19,385 -28,028 -44,502
Non-Operating Income (Expense) 2,893 1,084 1,631
Interest Expense 377 536 374
Unusual Expense -626 1,542 -778
 Pre-tax Income -16,243 -29,022 -42,467
Income Taxes 27 -158 -65
Equity in Earnings of Affiliates -740 -560 146
Income
Other After-Tax Adjustments - - -
Consolidated Net Income -17,010 -29,424 -42,256
Minority Interest Expense -49 -1,002 -493
Net Income from Continuing -16,961 -28,422 -41,763
Operations
Preferred Dividends - - -
Net Income Available to Common -16,961 -28,422 -41,816
EPS (Recurring) -28.9 -46.96 -75.53
EPS - Basic - Before Extraordinaries -28.17 -48.81 -74.55
EPS (Diluted) -28.17 -48.81 -74.55
EBITDA -17,600 -26,283 -43,386
Stock Option Compensation Expense 787.5 1,162.70 1,082.20
Operating Lease Expense 92 148 128

Balance Sheet:

Particulars 3/31/2021 3/31/2020 3/31/2019

Cash & Short-Term Investments 30,236 37,296 29,592
Short Term Receivables 35,338 18,992 26,779
Inventories - - -
Other Current Assets 8,424 8,069 10,338
Total Current Assets 73,998 64,357 66,709
Net Property, Plant & Equipment 4,662 5,474 5,283
Total Investments and Advances 5,164 19,023 3,543
Long-Term Note Receivable 1,365 7,758 2,415
Intangible Assets 666 661 3,707
Deferred Tax Assets 35 147 478
Other Assets 5,623 5,726 5,981
Total Assets 91,513 1,03,146 88,116
Short Term Debt (including Current 5,693 2,459 7,285
Portion of Long-Term Debt)
Accounts Payable 6,052 6,116 7,360
Income Tax Payable 8 24 8
Other Current Liabilities 9,799 8,061 12,566
Total Current Liabilities 21,552 16,660 27,219
Long Term Debt 427 1,822 2,038
Provision for Risks Charges 247 203 115
Deferred Tax Liabilities 6 126 633
Other Liabilities 4,119 3,423 -
Total Liabilities 26,351 22,234 30,005
Non-Equity Reserves - - -
 Preferred Stock - Carrying Value - - -
Common Equity 65,348 81,052 57,249
Total Shareholders’ Equity 65,348 81,052 57,249
Accumulated Minority Interest -186 -140 862
Total Equity 65,162 80,912 58,111
Total Liabilities & Stockholders’ 91,513 1,03,146 88,116
Equity
Book Value Per Share 107.94 133.88 94.57
Tangible Book Value Per Share 106.84 132.79 88.44
3.Cash Flow

Particulars 3/31/2021 3/31/2020 3/31/2019

Net Income (Starting Line) -16,983 -29,582 -42,321
Depreciation 1,785 1,745 1,116
Deferred Taxes & Investment Tax - - -
Credit
Investment Tax Credits - - -
Other Funds (Non-Cash) 1,886 3,914 -1,909
Funds from Operations -13,312 -23,923 -43,114
Extraordinary Item - - -
Changes in Working Capital -6,902 68 -1,323
Income Taxes Payable - - -
Net Operating Cash Flow -20,214 -23,855 -44,437
Capital Expenditures -1,927 -1,907 -1,773
Net Assets from Acquisitions -63 -80 -383
Sale of Fixed Assets and Businesses 56 41 363
Purchase or Sale of Investments 21,822 -21,000 22,640
Purchase of Investments -89,089 -95,487 -35,743
Sale Or Maturity of Investments 1,10,911 74,487 58,383
Other Uses -1,608 - -2,742
Other Sources 5 2,522 -
Net Investing Cash Flow 18,285 -20,424 18,105
Cash Dividends Paid - - -
Common Dividends - - -
Preferred Dividends (Cash Flow) - - -
Change in Capital Stock 107 50,400 21,869
Repurchase of Common Pref Stock - - -
Sale of Common Pref Stock 107 50,400 21,869
Proceeds from Stock Options 107 50,400 21,869
Other Proceeds from Stock Options - - -
Issuance or Reduction of Debt, Net -1,582 2,040 -31
Change in Long - Term Debt - - -
Issuance of Long-Term Debt - - -
Reduction of Long-Term Debt - - -
Net Financing Active Other Cash 2 - -
Flow
 Other Financing Activities Uses - - -
Net Financing Cash Flow -1,819 52,149 21,788
Exchange Rate Effect 40 -7 -54
Miscellaneous Funds - - -
Net Change in Cash -3,708 7,863 -4,598
Free Cash Flow -22,141 -25,762 -46,210
Increase in Loans - - -
Decrease in Loans - - -
Increase in Deposits - - -
Decrease in Deposits - - -

2.Funding of the Company with detail of investors with rounds of funding:

Date Round Amount Investor Valuation
Private
11-05-2021 Equity $1100M Aberdeen Standard Investments  
      Abu Dhabi Investment Authority  
Corporate
27-10-2021 Minority $123M Swiss Reinsurance Company $534.78M
A) Funding:
B) Investors:
Last
First Funding Funding Investors Type City Round and Year
Asset/Investmen New York Private Equity
11-05-2021 11-05-2021 Black Rock t Management (2021)
1
Sovereign Private Equity
11-05-2021 11-05-2021 GIC Wealth Fund Singapore (2021)
1
CPP Private Equity
11-05-2021 11-05-2021 Investments Pension Fund Canada (2021)
Abu Dhabi 1
Investment United Arab Private Equity
11-05-2021 11-05-2021 Authority Private Equity Emirates (2021)
Aditya 1
Birla Sun Private Equity
11-05-2021 11-05-2021 Life AMC Mutual Fund India (2021)
Aberdeen 1
Standard Asset/Investmen United Private Equity
11-05-2021 11-05-2021 Investments t Management Kingdom (2021)
Governmen 1
t of Private Equity
11-05-2021 11-05-2021 Singapore Government Singapore (2021)
New York 1
City
Comptrolle Private Equity
11-05-2021 11-05-2021 r Government New York (2021)
Diversified 1
Fidelity Financial Massachusett Private Equity
11-05-2021 11-05-2021 Investments Services s (2021)
11-05-2021 11-05-2021 UBS Investment Switzerland 1
 Private Equity
Bank (2021)

3.Key Product Offering and Market Segmentation:

Market Segmentation:
Market segmentation is the process through which marketing managers at Paytm Wallet
can divide the large market into smaller segments based on distinct needs, characteristics, or
consumer behaviour. Paytm Wallet can do segmentation based on following criteria –
geographic, demographic, usage, user status, income, lifestyle, value proposition priorities,
benefits sought, loyalty status, gender, social class, self-perception, psychographic factors,
and other attitudes.One of the most widely used multivariate segmentation system is –
PRIZM, developed by Clarita’s. It is widely used by various marketing and advertising
agencies. It comprises 68 customer segments based on the US Household Purchasing
Preferences data.
Kay product Offering:
1.paytm Payment bank:
  Paytm received a license from Reserve Bank of India to launch the Paytm Payments
Bank as a separate entity. Founder Vijay Shekhar Sharma will hold 51% share, One97
Communications 39% and 10% will be held by a subsidiary of One97 and Sharma. The bank
was officially inaugurated in November 2017. Over 1,00,000 banking outlets across India by
the end of 2018. However, the bank's branches are yet to touch double digits.
The Bank has appointed veteran banker Satish Kumar Gupta as its new Managing
Director and CEO
2.Paytm Mall:
Paytm launched its Paytm Mall app, which allows consumers to shop from 1.4 lakh registered
sellers. Paytm Mall is a B2C model inspired by China's largest B2C retail platform Tall.
Sellers have to pass through Paytm-certified warehouses and channels to ensure consumer
trust.
4.Demography of Paytm:
As mentioned earlier, Paytm’s business model is B2B and B2B2C. The company caters
to Offline retailers and businessmen/women and small underserving merchants, Consumer
business and The Unity Small Finance Bank. And the business solutions provided by Bharat
are specifically designed to cater to the above-mentioned segments. started as an online
wallet, later transformed into a complete mall and brought a paradigm shift to the retail
industry.
Be it a prepaid mobile recharge, paying utility bills, booking train tickets or shopping
for clothes, this m-commerce store became the substitute for several apps. Users can recharge
their DTH, book movie tickets, pay insurance premiums, shopping bills, contribute to the
charity of your liking and get in the fast lane with Paytm Fasting. The M-commerce aspect of
the portal lets several merchants list their products.
5.Competition Matrix:
The two main competitors are Bartle and Phonepee:

Competition Matrix
Particulars Bharat Paytm Phonepayee
Funding $702.25M $2.5 B $1.2B
  Bharat Paytm Bank, UPI Payments

, Insurance, Recharges,
  Card, Wallet,
Investments
 
Product/ service Bharat Swipe, Recharge and
 
  Bharat Bill services,
 
  Loans Digital Gold

  Though Though the

  almost all merchant
  features are transactions
  same with done by
  Bharat and Ponape of
  Pat, like $1B surpass
  provision of the
  Through Unique loans to the transactions
  QR code then users even done by
Comparison Paytm, Truecaller, they reach Bharat
  Amzeon Pay, Gay transaction ($76M),
  accepted it. limit. But Bharat is
  Paytm is considered as
  considered to better option
  be better among both
  company in because of its
  terms of unique QR
  provision of Payment
  service system.

6.Relevance of Company in current Fintech Landscape:

News: Wells Fargo Looks to BaaS, A $26B Acquisition, Paytm’s $1B Raise.
Paytm is a payments company that offers multi-source and multi-destination payment
solutions. It offers comprehensive payment solutions to merchants and allows consumers to
make payments from any bank account to any bank account at a 0% fee.Instalment of Paytm
wallet another fintech give reliant change in fintech and banking industry.
As per EY report of innovation blockchain is important patty and it has advantage of
straightforwardness, changeless, audibity. Blockchain gives security to data. As Paytm is
digital Paytm app which secured Paytm using technology it gives more importance in today’s
covid era as a cashless transaction and put more relevance in business scenario. FinTech is
significantly innovated to money related concept, adjustment and strategies and Paytm is the
one of the leading fintech in term of digital payment gateway.
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