Paytm co-founder Vijay Shekhar Sharma has blamed global market conditions for the poor listing of the company’s shares. Vijay Shekhar Sharma said that the IPO of Paytm’s parent company One97 Communications Ltd came at a time when the global market was already risk averse due to various factors, which affected the performance of the company’s IPO. inserted.
Speaking to Ranjan Anandan, Managing Director, Sequoia Capital, during the India Digital Summit 2022, Vijay Shekhar Sharma said, “Looking at the global level, we have set foot at a time when the market is on the cusp of QE, free money and many other parameters. The reason was already shock. South American companies were down more than 70 percent. Not entirely because of this. But it was a big reason nonetheless.”
Sharma said Paytm’s business performance is improving and we have strong growth potential. Especially in terms of income from payment service and growth of credit business.
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He said, “Paytm’s success will depend on how we monetize financial services. Payments is one item, in terms of revenue, which is growing in a big way. This quarter we are going to do 10 crores from payments alone. The dollars are moving towards earning income, which is a big income.”
The contribution of payments services to Paytm’s business is expected to remain in the double digits. Sharma said that if merchant services are also included in this, then the revenue from payments is expected to be $ 140 million in the current quarter, which will be a growth of 50-60 percent on a yearly basis.
Sharma also claimed that Paytm is now processing more loans than Bajaj Finance, which is counted among the market leaders in this segment. “For our credit business, we need to be benchmarked against just one company and that is Bajaj Finance,” he said.
However, despite the statements of Vijay Shekhar Sharma, the shares of Paytm continued to fall. On Thursday, January 13, Paytm shares closed at Rs 1,027.70, which is its new low. Paytm shares are currently trading at a fall of about 51 per cent from its issue price of Rs 2,150. In just the last one month, it has seen a huge decline of 33.77 percent.
Analysts of brokerage firm Macquarie have given a target price of Rs 900 for Paytm shares. On the other hand, other brokerages like Morgan Stanley, JP Morgan and Goldman Sachs have given a target price of Rs 1,600-1,900, anticipating a rise in its prices.
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