Indian digital payments giant Paytm saw its shares soar by 74% on February 6th after announcing a surprising operating profit for the third quarter. The financial technology company, which is one of India’s largest, had been facing increased competition in the market but managed to turn a profit due to a rise in digital payments and financial services.
Paytm reported a profit of INR 1,121 crore ($152 million) in the quarter ending December, driven by strong growth in its payments and financial services business. The company’s operating revenue rose by 75% year-on-year to INR 3,958 crore ($534 million).
The news was a welcome surprise for investors, who have been concerned about Paytm’s financial performance in recent months. The company has been investing heavily in its business, acquiring insurance and mutual fund startups and expanding into new areas like lending and wealth management.
Paytm’s CEO, Vijay Shekhar Sharma, stated that the company’s strong financial performance was a result of its focus on customer satisfaction and a commitment to innovation. He also credited the Indian government’s push for digital payments and financial inclusion for creating a supportive environment for the company’s growth.
The announcement of a surprising operating profit has also fueled speculation about Paytm’s plans for an initial public offering (IPO) in the near future. The company, which is valued at over $16 billion, has been considering going public for some time, and this strong financial performance could be seen as a sign that it is ready to take the next step.
Overall, the announcement of a surprising operating profit has been met with optimism and excitement, as it marks a significant milestone for Paytm and the Indian digital payments industry as a whole. With continued growth and innovation, the company is well positioned to maintain its leadership in the market and achieve even greater success in the future.
what is the growth story of paytm?
Paytm has grown from a mobile recharge and bill payment platform to a leading fintech company in India. It was founded in 2010 by Vijay Shekhar Sharma and initially focused on offering mobile recharge and utility bill payments through its platform. Over time, the company expanded its services to include digital wallets, e-commerce, and wealth management.
The company saw a huge surge in growth in 2016 when the Indian government demonetized high-denomination currency notes and pushed for a cashless economy, leading to an increase in demand for digital payment services like Paytm. Since then, Paytm has continued to grow and expand its services, and it has become one of the most widely used fintech platforms in India.
In addition to its domestic success, Paytm has also expanded its operations into international markets, including Canada and Japan. The company has raised over $2 billion in funding from investors such as SoftBank, Ant Financial, and Berkshire Hathaway. Today, Paytm is valued at over $16 billion and is considered to be one of the leading fintech companies in India and beyond.