It is also betting on lending and insurance services. Google (Google Pay), PhonePe, and Facebook (UPI via WhatsApp) are giving them cut-throat competition. The company has competitors in wealth management, payment gateway, insurance, etc. However, analysts believe overpricing and growth concerns are primary issues for the drop in share price. After the IPO, Alibaba and Ant Group have a 30% stake in the company, which could lead to regulatory clearance issues. Currently, the market cap is around $5.24 billion. The company lost over $3 billion in market cap after trading hours on the first day of listing. Therefore, Paytm’s business model requires creating a huge ecosystem in the long term, and the stock market cannot impact the purpose of the company. On the other hand, in the long run, they act as weighing machines. The CEO believes that the market in the short run is opinion polls. For instance, with any food delivery app like Zomato- it is easy to understand customer acquisition, how they make money, etc. He believes people do not understand the Paytm’s business model and other fintech companies compared to other consumer internet firms. Paytm’s IPO comes after stellar performances of other digital startups after listing, such as Nykaa, Policybazaar, and Zomato, whose public valuations were higher than private ones. Vijay Shekhar Sharma, the CEO, mentioned that the much-hyped IPO’s underperformance on the first day does not reflect the company’s weak long-term performance. One97 Communications, the parent company of Paytm, a digital payment platform, had a disappointing debut on the stock exchange after its share price plunged more than 26% from the issue price.
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