Startup struggles with internal regulation issues
Paytm, an Indian digital payments pioneer founded by Warren Buffett and currently undergoing regulatory assessments of its data management systems intends to break even in the next year and a half.
The startup held an IPO in November
The stock of One 97 Communications Ltd. jumped more than 3% when the company’s outlook was revealed. In the fourth quarter, the startup processed over 71 million transactions on average.
Paytm has struggled to regain investor trust since November, when it staged India’s largest initial public offering in history. Paytm has touted India as a sign of expanding appeal to global capital.
Investors are becoming increasingly concerned about the company’s long-term growth prospects as well as potential regulatory difficulties. The central bank barred the company’s loan facility from admitting new clients in March, citing worries that it was leaking data to local users, including Chinese companies, offshore.
Since its IPO, the company has lost roughly 70% of its value, and analysts have questioned Warren Buffett’s ability to turn Paytm into a profitable business anytime soon.