Is the Paytm IPO worth applying to?

Paytm is one of the Fintech flagships which has benefited through

1. Digital India
2. Cash Ban
3. Low-Cost Internet (owing to Reliance Jio Entry)

Also, the company has many points which are its USP

• Market Penetration
• Multiple Venues for Revenue (the work is in progress)

Despite having said that, the parent company of Paytm – One97 reported

• Consolidated loss of Rs 1,701 crore in FY21 compared to Rs 2,942 crore in FY21
• Revenue from the main offering – Paytm Payments of Rs 1,987.45 crore in FY21 and a total comprehensive income of Rs 18.79 crore

Considering the trajectory in which the company has been performing along with other fintech startups which focus on binging the market with offers to garner new customers, the road to profitability seems doubtful.

Also, the IPO can be at best provide a venue for existing investors to exit (a case similar to Zomato).

On a personal level, I would prefer to skip it.

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Reference:

• One97 Communications Balance Sheet, One97 Communications Financial Statement & Accounts
• Paytm Reports Rs 1,701-Crore Loss For FY21
• Zomato IPO in progress: 10 things to know before you invest
• FinTech In India
• How Does Paytm Earns Money? – FriendFactor
• Digital India – Wikipedia