![]() That’s how your business would grow, after all. YouĬould, of course, invest that money back into your company. If you’re the management of a publicly listed company, and you make a nice profit at the end of the year, there’s a couple of things you can do with those profits. Paytm is returning excess cash before it even has it Invested only in Nykaa, of these new age stocks, since it doesn’t have all these overhangs. Add to it the fact that it’s burning cash, makes it a time bomb. So, I feel, although PaytM is omnipresent, it’s survival might be at stake as the entry barriers are not high enough. ![]() Most of the structure is already in place. Esp, these Mobile operators, they will start with giving some incentives/freebies and get people to convert to their apps. I feel as soon as there is profitability these players will jump in. India being a Low credit penetrated country gives Paytm a hope for survival.īeing a loan intermediate is it’s primary revenue sources.īut, can it be replaced by Gpay, WhatsApp or Airtel/Jio app? Small ticket loans for everyday expenses is made easy. (Banks are heavily regulated, but there is path to profitability and a proven track record)Īpp is great, super good. And I don’t like to invest where govt regulation is strong. ![]() UPI is the future and is 100% Govt regulated. IPO was mostly OFS therefore it was most likely set to be as expensive as possible. Paytm’s valuation should consider these aspects.ĭisclosure: Invested for learning purposes. How much is this belief worth is what drives paytm’s current valuations.Ĭlearly, the early investors like Softbank don’t have this belief, as they’re selling off after lock-in period (or under pressure from their investors). So if any of these players can become profitable, paytm has a better of the chances to be that one. ![]() One can even think that it will be a disaster for our economy if none of them become profitable. So it is not unreasonable for people to believe that paytm could also become profitable, considering that they’re not taking in lots of debt.Īnother way to look at is this: Are online payment players important for our economy? Yes. We also should not forget that PayPal, Facebook, or Amazon were loss making. Is this skepticism priced in the current valuations? Maybe. I believe this is the only valid skepticism, as Paytm is indeed losing truck load of money. ![]()
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