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Incorporated in 2000, One97 Communications Limited (‚Paytm‛) is India’s leading digital ecosystem for consumers and merchants. Paytm offers ‘Payment Services’, ‘Commerce and Cloud Services’, and ‘Financial Services’ to 33.3 crore consumers and over 2.18 crore merchants registered with them, as of June 30, 2021. Their 2-sided (consumer and merchant) ecosystem enables commerce, and provides access to financial services, by leveraging technology to improve the lives of their consumers and help their merchants grow their businesses.

* In 2009, the company launched the first digital mobile payment platform, "Paytm App" to offer cashless payment services to customers and now, it became India's largest payment platform and the most valuable payments brand with a total brand value of US$6.3 billion as per Kantar BrandZ India 2020 Report.

* The app enables customers to do cashless transactions at stores, top-up mobile phones, online money transfers, pay bills, access digital banking services, purchase tickets, play games online, buy insurance, make investments, and more. However, merchants can use the platform for advertising, online payment solutions, offering products to customers, and loyalty solutions.

* They have created a payments-led super-app, through which they offer their consumers innovative and intuitive digital products and services. They offer their consumers a wide selection of payment options on the Paytm app, which includes: 1) Paytm Payment Instruments, which allow them to use digital wallets, sub-wallets, bank accounts, buy-now-pay-later and wealth management accounts; and 2) Major third-party instruments, such as Debit and Credit Cards and Net Banking.

* Offer services such as Paytm Wallet, Paytm QR, Paytm Soundbox, Gold investments and Fixed Deposit, Paytm Postpaid, Merchant Cash Advance and FASTag.

Outlook & Valuation:

The revenues of the company have been on the declining side, in FY19 revenue was at Rs 3,579 cr while in FY21 it was at Rs 3,186 cr. Also, it is a loss-making company with a loss of Rs (4,230.9) cr in FY19 which however reduced to Rs (1,701) cr in FY21. We are in an era of new-age businesses where we have seen many unicorns getting listed recently. It is really arduous to provide a valuation for such types of companies. We expect only leaders will survive over a period of time and only a few such companies will be wealth creators while many can be wealth destroyers. As India is on the verge of digitalization, we may expect the company to get benefited from the same also new acquisition and strengthening of the PAYTM ecosystem from the IPO will be beneficial for the company. Thus we assign a "SUBSCRIBE" rating only for aggressive investors.

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