Paytm valuation surges 25% to $15 billion

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E-commerce payment system and digital wallet company Paytm valuation has jumped 25% to $15 billion in the latest investment round, founder Vijay Shekhar Sharma said. Paytm was valued at $12 billion a year ago when Warren Buffett-controlled Berkshire Hathaway invested about $300 million. Paytm’s valuation was about $6 billion in March 2017.

There are about 14 million merchants using Paytm services and it plans to increase the base to 24 million by the end of this fiscal. Currently, Paytm sees 800-900 million transactions a month.  Vijay Shekhar Sharma is the founder and CEO of One97 Communications, the parent company of Paytm. One97’s rapid expansion and diversification drive is also grabbing eyeballs. Apart from its thrust on Paytm Payments Bank Ltd, which reported a Rs 19-crore profit for FY19, One97 is also hoping to make Paytm Money the third unicorn in its stable after Paytm Mall and its flagship brand.

Paytm aims to expand its array of service offerings. Recently, it expanded its education business with a full bouquet of services across payments, commerce, financial and academic products.

The total online commerce that happens on our platform, where we make money, is about $45-50 billion, Sharma said. There is another $45-50 billion, which includes the likes of money transferred or small shop payment.

Founded in 2010, Paytm provides multiple startups and large businesses with solutions ranging from a shareable PaytmQR code to deep integration. It enables users to process digital payments through any preferred payment mode including credit and debit cards, net banking, paytm wallet and UPI (unified payment interface).

Paytm had also launched its own payments bank in 2017. Paytm Payments Bank is a mobile-first bank with zero charges on all online transactions (such as IMPS, NEFT, RTGS) and no minimum balance requirement. The company has also been diversifying its business with the launch of new verticals such as Paytm Mall (ecommerce), Paytm Money (wealth management), Paytm First Games (online gaming), and a recent partnership with SHEROES to launch a community platform for women.

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