In market dynamics, One97 Communications, the parent company of fintech platform Paytm, noticed its shares skyrocket to a seven-month peak, fighting the general lethargy in the market. This marks the stock’s highest level since January 31, 2024.
Over the past month, Paytm’s market price has surged 34%, and the stock has doubled, rising 121% from its 52-week low of Rs 310 recorded on May 9, 2024.
Paytm’s shares continued their trajectory as the trading session grew, trading at Rs 679.60, up 8%, while the BSE Sensex saw a marginal decline of 0.05%. A robust trading session was observed, with a combined 19.02 million shares exchanging hands on the NSE and BSE.
Paytm is a player in India’s mobile payments and financial services distribution landscape. It is known for pioneering QR-based mobile payments and supporting small businesses with payment and marketing solutions.
In recent quarters, Paytm has diversified into insurance, equity broking, and funds distribution, positioning itself to cross-sell these services and support its role as a leading financial services distributor.
In a move calibrated to sharpen its focus on core payments and financial services, Paytm sold its entertainment ticketing business to Zomato for Rs 2,048 crore, setting the stage for a substantial increase in its bottom line and bolstering its balance sheet to underpin future growth.
ALSO READ: Paytm Shares Jump 10% Today; How Strong is This Upside?
Since August 29, Paytm’s stock has rallied 28% over 9 trading days after its wholly owned subsidiary, Paytm Payment Services Limited (PPSL), announced receiving foreign direct investment (FDI) approval and plans to resubmit its payment aggregator (PA) license application. With the FDI approval secured, PPSL will proceed with the PA application resubmission while continuing to provide online payment collection services to existing partners.
Paytm’s operations faced challenges earlier this year when the Reserve Bank of India (RBI) issued a directive affecting its associate commodity, Paytm Payment Bank Ltd (PPBL), in January 2024, impacting revenue scale and profitability.
However, Paytm has successfully changed services once offered by PPBL to other partner banks, ensuring uninterrupted service for its customers and merchants. The company believes this transition will de-risk its business model and unlock more monetization opportunities through collaboration with partner banks, leveraging strong customer and merchant engagement.
According to Paytm’s FY24 Annual Report, India’s payments landscape has experienced a significant transformation caused by mobile payment innovations, digital infrastructure enhancements, regulatory support, and government efforts to increase consumer and merchant adoption.
The transition towards a cashless economy and growing preference for mobile transactions have fueled rapid growth in mobile payments, supported by expanding digital commerce and services. As noted in the report, digital transactions in India surpassed Rs 3.2 trillion in FY23, with expectations to reach Rs 4 trillion by FY26.
To know more, click here.
