Share price fell after record IPO
Following a record initial public offering and a rocky stock market debut, Paytm, an Indian digital payments startup, is bracing for more scrutiny when it announces earnings on Saturday.
Paytm shares dipped 7.7% in pre-results trading on Friday, and while they have increased roughly 32% in the past three days, they are still considerably below the $ 2.5 billion IPO price as investors analyze the company’s long-term prospects.”
Analysts need the stability of the fintech giant
Paytm’s revenue have remained relatively steady in recent years, despite a rising client base.” According to Ruchit Jain, head of research at 5paisa.com discount broker, despite the decrease in losses, none of the business categories, such as payments, consumer loans, or insurance, are profitable.
According to her, the focus will be on which categories are beginning to generate more revenue and how the firm is using its existing customer base to cross-sell other items.
“Paytm has a long way to go before it becomes profitable.” “Digital payments account for over 75% of his company,” said Chakri Lokapria, Chief Investment Officer of TCG Advisori Services. “This is a very competitive industry with limited client retention.”
The firm is seeking new clients and sellers, as well as updating information on new lines of business and activities targeted at strengthening customer loyalty and marketing credit and insurance products, according to the firm.