About One97 Communications Limited

_x000D_ Incorporated in 2000, One97 Communications Limited (Paytm) provides payment services, financial services, and commerce and cloud services. In 2009, the company launched Paytm, a payment service allowing prepaid users to top up their mobile accounts and shop directly using their bank accounts or credit cards. In 2013, it received an RBI license for the semi-closed wallet._x000D_ _x000D_ The Reserve Bank of India issued a license to Paytm Payments Bank Limited to carry on the ‘payments bank’ business in India in 2017. In 2019, Paytm Money Limited was issued a certificate of registration by SEBI to act as a stockbroker. After a year, the company launched its mini-app store to support Indian developers in 2020._x000D_ _x000D_ The company received the Best VAS Innovative Product Award in 2011-12 by ET Telecom Awards. In 2023, it won Best Fintech Company of the Year by FinTech India Innovation Awards 2023._x000D_

Business Segment

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• Payment Services: The company provides payment services through its Paytm app, which has features like Wallet, Paytm Postpaid (BNPL), and third-party instruments like cards and net banking to make online payments. During FY 2023, payment services contributed to 62% of overall revenue.
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• Financial Services: The company's financial services business consists of loan distribution (in partnership with lending partners), as well as insurance and wealth management offerings. The segment generated a 19% revenue contribution in FY 2023.
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• Commerce and Cloud Services: Paytm provides its merchant partners with services like ticketing, promotions, and gift voucher sales to clients in order to support their business growth by utilising Paytm's customer traffic. The segment helped the company group with 19% of overall revenue in FY 2023.
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_x000D_ The company has 29 subsidiaries as of March 31, 2023, and a few of them are listed below:_x000D_

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• Paytm Entertainment Limited: The company is a wholly owned subsidiary of One97 Communications Limited (Paytm). It develops and operates an online ticketing platform for booking movie tickets.
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• Paytm Money Limited: The company is a wholly owned subsidiary of One97 Communications Limited (Paytm). It provides stock broking services like opening of demat accounts, etc. 
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Key Personnel

_x000D_ Vijay Shekhar Sharma, Founder, MD & CEO_x000D_ _x000D_ Mr Vijay Shekhar Sharma is the founder of One97 Communications Limited, and he started the consumer brand Paytm in 2009. He is the Managing Director and Chief Executive Officer of the company.  In 2022, he was reappointed as MD & CEO of Paytm for 5 years._x000D_

Management Outlook

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• The company is optimistic about growth in unique online transacting users for services such as online banking, mobile top-ups, in-store payments, etc., on the back of an increasing shift towards a cashless economy and user preference for transacting via smartphones, mobile payments continue to scale rapidly.
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• According to Paytm, its payments business serves as a crucial instrument for acquiring new clients and merchants and, as a result, serves as a desirable channel for other companies, such as those that distribute credit and facilitate trade.
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SWOT Analysis

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• First mover advantage.
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• Wider range of services.
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_x000D_ Weaknesses_x000D_

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• Consistent losses in business.
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• Negative free cash flows.
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_x000D_ Opportunities_x000D_

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• Large audience to cater to.
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• Growing digitalisation.
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_x000D_ Threats_x000D_

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• Intense competition.
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• Regulatory uncertainties.
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