One97 Communications Ltd. (Paytm) is an Indian multinational technology firm based in Noida, Uttar Pradesh. Founded in 2000 by Vijay Shekhar Sharma, the company provides digital payment and financial services to both consumers and merchants across India through its various subsidiaries and business ventures.
According to Paytm’s CEO and co-founder, Vijay Shekhar Sharma, the business will continue to divest non-core functions. On December 10, 2024, Sharma provided an update, saying, “The company’s focus is on core business.”
He made these remarks at the Rising Rajasthan Global Investment Summit 2024, at Jaipur. “We view payments as our competitive advantage, where we anticipate significant growth,” he noted regarding the divestment strategy.
Furthermore, shares in Paytm have surged following the company’s Singapore branch’s recent sale of a stake in the Japanese payments firm, PayPay Corporation, for ₹2,364 crore. This transaction has bolstered the parent company’s cash reserves.
Paytm currently holds a cash reserve exceeding ₹10,000 crore, which will increase by over 20% following the sale of its movie ticketing division for ₹2,364 crore. In August, the company also paid ₹2,048 crore to Zomato for its entertainment ticketing operations.
In a positive development, Paytm has received approval from the National Payments Corporation of India (NPCI) to add new UPI users. This approval is expected to help rejuvenate its declining user base and suggest a more relaxed regulatory approach.
Paytm reported a consolidated profit of ₹928.3 crore, a significant turnaround from a loss of ₹290.5 crore a year earlier. This positive outcome was primarily due to the sale of its movie ticketing and events division to Zomato.
However, on a year-on-year basis, revenue from operations dropped by 34.1%, falling from ₹2,518.6 crore in Q2 FY24 to ₹1,659.5 crore in Q2 FY25. Nevertheless, there was a sequential growth of 10.5% compared to the ₹1,501.6 crore recorded in Q1 FY25.
At 12:09 PM, the share price of One 97 Communications Ltd (Paytm) traded at ₹956.75 per share on the NSE.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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