Actually, both Paytm and Ola are affected by Corona. Paytm is now getting competition from global companies like Phone Pay, Google Pay etc. Ola remained completely closed for several months due to lockdown
Companies like Ola faced the biggest problem due to working from home globally. Paytm used to occupy mobile payments two years ago, now companies like Google, Phone Pay, Amazon Pay and Reliance are competing.
Global mutual fund companies T Rowe Price and Vanguard have lowered the valuations of two of India’s most valuable internet companies, Paytm providing mobile payment facilities and ride-hailing platform Ola. This is because Corona interrupted their business in the first half. Both these mutual funds have a stake in Ola and Paytm.
T. Rowe Price invested $ 150 million
In December 2019, T Rowe Price invested at least $ 150 million in Paytm. By June 2020, it has reduced the value of its shares by 26%. The stock, which took $ 253 a share, is now valued at $ 188. When T. Rowe Price last invested in Paytm, Paytm was valued at $ 16 billion.
Ola’s business affected
Ola’s business has been badly affected by the Corona epidemic. As of August 31, Van Gard has seen a valuation drop of around 50% in shares. Ola shares are being valued at $ 162.5 per share as against $ 311 in February. The valuation of Ola was around $ 6.5 billion in the first half of 2019.
Mark down even before
This is not the first time India’s most valuable startups have faced a markdown from mutual funds. In 2016, e-tailer Flipkart was valued at $ 5.6 billion by Morgan Stanley and Fidelity but was valued at $ 22 billion by the US retail giant Walmart. Earlier, Ola faced a 40% markdown from Mohra in 2017 before recovering its valuation in 2018. Both Flipkart and Ola had to raise capital at lower valuations before recovering.
Paytm said June’s valuation was
According to Paytm, the June valuations for the company were different, as the markets were “extremely volatile” back then. Some of its new businesses such as Payment Gateway, UPI Money Transfer, Equity Trading, Lending, POS Devices and Advertising are outperforming expectations. According to Paytm, however, we cannot comment on the internal valuation of our shareholders. Many of our new businesses, especially Payment Gateway, UPI Money Transfer, Equity Trading, Lending, POS Devices and Advertising are performing well beyond our expectations.
Paytm’s revenue reached 3,629 crore
Revenue for FY 2020 has increased to Rs 3,629 crore. Investors tracking the startup ecosystem said the epidemic in digital payments has increased, helping Paytm. As it is growing competition, the company faces a challenge. A venture capital investor, requesting anonymity, said, “Paytm had a monopoly in mobile payments two years ago but now it is getting a tough competition due to the recent tie-ups between PhonePe, Google Pay, Amazon Pay and Reliance and WhatsApp.” is.
All this has happened when the government has banned investment from China amidst border conflict and dispute. Let us know that Paytm also has to face questions about Chinese investment.
Hail too markdown
Ola has been marked as a global slowdown in the mobility business. All the big companies of the world have allowed employees to work from home for the whole year. In the US too, its rival Uber said in August that business in different cities is down 50-85 per cent. Ola is now increasing its focus on electric vehicles.