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8	8	* One 97 Communications has a full suite of payment services for both consumers and merchants
9	9	* One97 Communications is all set to come out with an initial public offer (IPO) on November 8. The proposed Rs 18,300-crore IPO will make it one of India’s 50 most valuable companies.
10	10
11		-
12	12	[[image:Paytm0.jpg]]
13	13
14	14
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15	15	= Company Overview =
16	16
17	17
18		-One 97 Communications Limited is India’s leading digital ecosystem for consumers and merchants as One 97 Communications has built the largest payments platform in India based on the number of consumers, number of merchants, number of transactions7 and revenue as of March 31, 2021 according to RedSeer. The company offered payment services, commerce and cloud services, and financial services to 337 million registered consumers and over 21.8 million registered merchants, as of June 30, 2021. The company's two-sided (consumer and merchant) ecosystem enables commerce, and provides access to financial services through its financial institution partners, by leveraging technology to improve the lives of its consumers and help its merchants grow their businesses. In FY 2019, FY 2020 and FY 2021, and in the three months ended June 30, 2020 and 2021, revenue from its payment and financial services accounted for ₹16,955 million, ₹19,068 million, ₹21,092 million, ₹4,298 million and ₹6,894 million, respectively, i.e., 52.5%, 58.1%, 75.3%, 78.0% and 77.4%, respectively, of its revenue from operations.{{footnote}}https://static.paytmmoney.com/data/forms/ipo/Paytm_DRHP.pdf{{/footnote}}
	17	+One 97 Communications Limited is India’s leading digital ecosystem for consumers and merchants as One 97 Communications has built the largest payments platform in India based on the number of consumers, number of merchants, number of transactions and revenue as of March 31, 2021 according to RedSeer. The company offered payment services, commerce and cloud services, and financial services to 337 million registered consumers and over 21.8 million registered merchants, as of June 30, 2021. The company's two-sided (consumer and merchant) ecosystem enables commerce, and provides access to financial services through its financial institution partners, by leveraging technology to improve the lives of its consumers and help its merchants grow their businesses. In FY 2019, FY 2020 and FY 2021, and in the three months ended June 30, 2020 and 2021, revenue from its payment and financial services accounted for ₹16,955 million, ₹19,068 million, ₹21,092 million, ₹4,298 million and ₹6,894 million, respectively, i.e., 52.5%, 58.1%, 75.3%, 78.0% and 77.4%, respectively, of its revenue from operations.{{footnote}}https://static.paytmmoney.com/data/forms/ipo/Paytm_DRHP.pdf{{/footnote}}
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20	20
21		-The company launched Paytm in 2009, as a “mobile-first” digital payments platform to enable cashless payments for Indians, giving them the power to make payments from their mobile phones. Starting with bill payments and mobile top-ups as the first use cases5 , and Paytm Wallet as the first Paytm Payment Instrument, One 97 Communications has built the largest payments platform in India based on the number of consumers, number of merchants, number of transactions and revenue as of March 31, 2021 according to RedSeer. One 97 Communications has also been able to leverage its core payments platform to build an ecosystem with innovative offerings in commerce and cloud, and financial services. Paytm is available across the country with “Paytm karo” (i.e. “use Paytm”) evolving into a verb for hundreds of millions of Indian consumers, shopkeepers, merchants and small businesses, according to RedSeer. As per the Kantar BrandZ India 2020 Report, the "Paytm" brand is India's most valuable payments brand, with a brand value of US$ 6.3 billion, and Paytm remains the easiest way to transact across multiple methods.
	20	+The company launched Paytm in 2009, as a “mobile-first” digital payments platform to enable cashless payments for Indians, giving them the power to make payments from their mobile phones. Starting with bill payments and mobile top-ups as the first use cases , and Paytm Wallet as the first Paytm Payment Instrument, One 97 Communications has built the largest payments platform in India based on the number of consumers, number of merchants, number of transactions and revenue as of March 31, 2021 according to RedSeer. One 97 Communications has also been able to leverage its core payments platform to build an ecosystem with innovative offerings in commerce and cloud, and financial services. Paytm is available across the country with “Paytm karo” (i.e. “use Paytm”) evolving into a verb for hundreds of millions of Indian consumers, shopkeepers, merchants and small businesses, according to RedSeer. As per the Kantar BrandZ India 2020 Report, the "Paytm" brand is India's most valuable payments brand, with a brand value of US$ 6.3 billion, and Paytm remains the easiest way to transact across multiple methods.
22	22
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24		-The Paytm app is a payments-led super-app7 , through which the company offer its consumers innovative and intuitive digital products and services. The company offer its consumers a wide selection of payment options on the Paytm app, which include (i) Paytm Payment Instruments, which allow them to use digital wallets, sub-wallets, bank accounts, buy-now-pay-later and wealth management accounts and (ii) major third-party instruments, such as debit and credit cards and net banking. On its app, the company enable its consumers to transact at in-store merchants, pay their bills, make mobile top-ups, transfer money digitally, create and manage their Paytm Payment Instruments, check linked account balances, service city challans and municipal payments, buy travel and entertainment tickets, play games online, access digital banking services, borrow money, buy insurance, make investments and more.
	23	+The Paytm app is a payments-led super-app , through which the company offer its consumers innovative and intuitive digital products and services. The company offer its consumers a wide selection of payment options on the Paytm app, which include (i) Paytm Payment Instruments, which allow them to use digital wallets, sub-wallets, bank accounts, buy-now-pay-later and wealth management accounts and (ii) major third-party instruments, such as debit and credit cards and net banking. On its app, the company enable its consumers to transact at in-store merchants, pay their bills, make mobile top-ups, transfer money digitally, create and manage their Paytm Payment Instruments, check linked account balances, service city challans and municipal payments, buy travel and entertainment tickets, play games online, access digital banking services, borrow money, buy insurance, make investments and more.
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27	27	The company help its merchants grow their business by giving them solutions that allow them to accept payments, acquire and retain consumers, improve their business operations and access financial services. Merchants can use in-store and online payment solutions to accept payments through Paytm Payment Instruments as well as major third-party payment methods. To help them acquire and retain customers, and create demand, the company offer them services like selling tickets to customers, advertising, mini-app listings, channel and loyalty solutions. In addition to helping its merchant ecosystem facilitate more commerce, the company also provide software and cloud services that allow large, medium and small merchants to improve their business operations and access important financial tools such as banking, wealth and credit facilities.
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53	53	* Rental Bill Payment
54	54	* Fastag Recharge
55	55
56		-
57	57	**Pay Loan EMI, Insurance Premiums & Education Fee**
58	58
59	59	* Pay Loan EMI
60	60	* Pay Insurance Premium
61	61
62		-
63	63	**Book Travel & Entertainment**
64	64
65	65	* Movie Ticket Booking
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69	69	* Events Booking
70	70	* Upcoming Movies
71	71
72		-
73	73	**Investments & Miscellaneous**
74	74
75	75	* Mutual Fund Investments
76	76	* Miscellaneous
77	77
78		-
79	79	[[image:Paytm1.jpg]]
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81	81
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99	99	In 2004, Real-Time Gross Settlement (RTGS), was launched. RTGS is mainly used for higher value transfers that require immediate clearance. In 2005, National Electronic Funds Transfer (NEFT) was introduced enabling transfer of fund between any two NEFT-enabled bank accounts on one to one basis and in 2010 Immediate Payment Service (IMPS) was launched.
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101	101
102		-=== Evolution of Indian Payment System ===
	97	+== Evolution of Indian Payment System ==
103	103
104	104	[[image:Paytm2.png]]
105	105
106		-
107	107	== Emergence of Digital Payments ==
108	108
109	109	Digital payments have been growing steadily over time, however India continues to be cash driven economy. In FY 2021, digital payments market size by value stood at approximately US$ 20 trillion with 43 billion transactions during the year.
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120	120	In India, there are approximately 65 million merchants of which 45 million have access to internet. Merchants including medium and small enterprises are rapidly adopting new age payment technology in order to offer hassle free shopping experience to their customers. Digital payment mode at merchants typically include QR code, Point of Sale (POS) machines and payment gateway.
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122	122
	117	+[[image:Paytm3.jpg]]
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125	125
126		-Business Segments
	121	+= Business Segments =
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128	128	The company offer products and services across “payment services”, “commerce and cloud services” and “financial services”. The company's products and services are carefully developed to address large markets, and in areas where the consumers and merchants are underserved.
129	129
130	130
131		-Payment Services
	126	+== Payment Services ==
132	132
133		-One 97 Communications has a full suite of payment services for both consumers and merchants which enables them to make and receive payments in a convenient, seamless and secure manner both online and in-store. According to RedSeer, One 97 Communications is the largest payments platform8 in India with a GMV of ₹4,033 billion in FY 2021. One 97 Communications has an overall mobile payments transaction volume9 market share of approximately 40%, and wallet payments transaction market share of 65% – 70% in India as of FY 2021, according to RedSeer.
	128	+One 97 Communications has a full suite of payment services for both consumers and merchants which enables them to make and receive payments in a convenient, seamless and secure manner both online and in-store. According to RedSeer, One 97 Communications is the largest payments platform in India with a GMV of ₹4,033 billion in FY 2021. One 97 Communications has an overall mobile payments transaction volume market share of approximately 40%, and wallet payments transaction market share of 65% – 70% in India as of FY 2021, according to RedSeer.
134	134
135	135	One 97 Communications has driven innovation in the Indian payments landscape, designing and building products for Indian consumers and merchants, and creating new market segments. The company launched a wallet product, Paytm Wallet in 2014, which saw wide-spread acceptance amongst Indians, many of whom were making digital and mobile payments for the first time. The company launched QR in 2015, which the company upgraded to All-in-One QR in January 2020, which is the only source QR code that gives merchants the power to seamlessly accept payments from Paytm Payment Instruments, third party and all UPI instruments directly into their bank account. In 2020, the company launched Paytm Soundbox, an IoT enabled payment acceptance device, providing real time audio confirmation for payment completion.
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143	143	The company also offer its merchants, Business Payments, a single platform solution to help manage their cash flows and their payables including (i) vendor payments, such as rent payments, invoices, and utility bill payments, (ii) customer cashbacks, refunds, and channel partner incentives, and (iii) employee salaries, reimbursements and tax benefits.
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145	145
146		-Commerce and Cloud Services
	141	+[[image:Paytm4.jpg]]
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	143	+
	144	+== Commerce and Cloud Services ==
	145	+
148	148	The company's commerce and cloud services offerings provides a lifestyle destination for consumers to avail lifestyle commerce services such as ticketing, travel, entertainment, gaming, food delivery, ride hailing and more. Easy access to such services within the Paytm App environment, through its native offerings or through its mini-apps partners, plays a critical role in user engagement and retention, and enhances its brand.
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150	150	Through its wide suite of commerce and cloud service offerings, merchants can connect with consumers to increase demand for their products and services, and improve their business operations. The company help its merchants conduct targeted outreach to its consumers to offer services such as ticketing (for entertainment and travel), commerce, deals, loyalty services, mini apps and advertising. The company also provide its merchants software and cloud services for various aspects of their business, such as billing, ledger, vendor management, customer promotions, catalogue and inventory management. The company's feature-rich Paytm for Business app provides merchants a comprehensive set of business management tools, including real time bank settlement and analytics, reconciliation services, banking services, access to financial services, and business growth insight tools to measure their business performance. The company also provide software and cloud services to enterprises, telecom companies, and digital and fintech platforms to track and enhance customer engagement, build payment systems, and unlock customer insights
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152	152	In FY 2020, the company processed a total Commerce GMV of ₹142.2 billion, and in aggregate generated over ₹11 billion of revenues (in FY 2021 and in the first quarter of FY 2022, the company processed a total Commerce GMV of ₹42.4 billion and ₹9.0 billion, and in aggregate generated over ₹6.9 billion and ₹2.0 billion of revenue, respectively).
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154	154
155		-Financial Services
	153	+== Financial Services ==
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157	157	Financial Services is its set of innovative financial inclusion offerings including mobile banking, lending, insurance, and wealth management for consumers and merchants. The company's reach, size and scale of payment services places it at the center of payments flows between consumers and merchants. This affords it opportunities to distribute and/or develop financial products that can be the source of payments (such as deposits or lending) and destination of payments (such as wealth management). Since most of its financial services businesses were launched recently between 2019 and 2021, financial services contributed a relatively small percentage of its revenue.
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	158	+[[image:Paytm5.jpg]]
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161		-Financial Highlights
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163	163
164		-<table>
	162	+= Financial Highlights =
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167		-IPO
	165	+[[image:Paytm6.png]]
168	168
169		-Paytm to become one of top 50 most valued listed companies
170	170
	168	+**Summary of financial Information (Restated Consolidated) **For the year/period ended
171	171
172		-[[https:~~/~~/www.timesnownews.com/business-economy/companies/article/paytm-ipo-paytm-to-join-top-50-most-valued-listed-companies/827835>>url:https://www.timesnownews.com/business-economy/companies/article/paytm-ipo-paytm-to-join-top-50-most-valued-listed-companies/827835]]
	170	+(% style="width:624px" %)
	171	+|(% style="width:128px" %)Particulars|(% style="width:105px" %) |(% style="width:92px" %) |(% style="width:96px" %) |(% style="width:96px" %) |(% style="width:103px" %)(₹ in million)
	172	+|(% style="width:128px" %) |(% style="width:105px" %)**30-Jun-21**|(% style="width:92px" %)**30-Jun-20**|(% style="width:96px" %)**31-Mar-21**|(% style="width:96px" %)**31-Mar-20**|(% style="width:103px" %)**31-Mar-19**
	173	+|(% style="width:128px" %)Total Assets|(% style="width:105px" %)94,590|(% style="width:92px" %)102,777|(% style="width:96px" %)91,513|(% style="width:96px" %)103,031|(% style="width:103px" %)87,668
	174	+|(% style="width:128px" %)Total Revenue|(% style="width:105px" %)9,480|(% style="width:92px" %)6,494|(% style="width:96px" %)31,868|(% style="width:96px" %)35,407|(% style="width:103px" %)35,797
	175	+|(% style="width:128px" %)Profit After Tax|(% style="width:105px" %)-3,819|(% style="width:92px" %)-2,844|(% style="width:96px" %)-17,010|(% style="width:96px" %)-29,424|(% style="width:103px" %)-42,309
173	173
174		-Paytm IPO: Paytm's parent One97 Communications is all set to come out with an initial public offer (IPO) on November 8. The proposed Rs 18,300-crore IPO will make it one of India’s 50 most valuable companies. Paytm IPO is India’s largest so far, surpassing Coal India’s public issue at Rs 15,745 crore that was raised in October 2010.
	177	+[[image:Paytm7.jpg]]
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	179	+
	180	+= IPO =
	181	+
	182	+**Paytm to become one of top 50 most valued listed companies**
	183	+
	184	+Oct 30, 2021; Paytm IPO: Paytm's parent One97 Communications is all set to come out with an initial public offer (IPO) on November 8. The proposed Rs 18,300-crore IPO will make it one of India’s 50 most valuable companies. Paytm IPO is India’s largest so far, surpassing Coal India’s public issue at Rs 15,745 crore that was raised in October 2010. {{footnote}}https://www.timesnownews.com/business-economy/companies/article/paytm-ipo-paytm-to-join-top-50-most-valued-listed-companies/827835{{/footnote}}
	185	+
176	176	Note that according to a report by Redseer management consulting company, Paytm is currently India’s leading digital ecosystem for consumers and merchants, with over 3.37 crore registered consumers and over 2.18 crore registered merchants as of June 30, 2021.
177	177
178	178	At the upper end of the price band of Rs 2,150 apiece, Paytm will have a post-money valuation of Rs 1,39,378.84 crore, which will propel it to the 36th position in terms of market capitalization among listed companies. Paytm’s market cap will be more than some of the established companies such as Hindustan Zinc, NTPC, Divi’s Laboratories, Power Grid Corp., Indian Oil Corp. (IOC), Vedanta, Pidilite Industries, SBI Life Insurance, Grasim Industries, Bajaj Auto, L&T Infotech, Mahindra & Mahindra (M&M), Hindalco Industries, Coal India, Zomato, SBI Cards and DLF Ltd.
179	179
180		-Paytm IPO details:
181	181
	191	+**Paytm IPO details:**
	192	+
182	182	Paytm IPO opening date: The current Rs 18,300-crore IPO will be open for subscription next month on November 8. The subscription will close on November 10.
183	183
184	184	Paytm IPO price band: One97 Communications has fixed the price band for the IPO at Rs 2,080-2,150 per share. The three-day public share sale will comprise a fresh issue of Rs 8,300 crore and an offer for sale of Rs 10,000 crore. In the present issue, the company has announced that 75% will be reserved for Qualified Institutional Buyers (QIBs), 15% for non-institutional investors (NIIs) and the remaining 10% for retail investors.
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195	195
196	196	Out of the total proceeds of the IPO, Rs 4,300 crore will be used to grow and strengthen Paytm’s ecosystem; it will offer easy access to technology and financial services to acquire new clients and business partners, and retain existing customers and merchants.
197	197
198		-Paytm Financials:
199	199
	210	+**Paytm Financials:**
	211	+
200	200	Paytm’s losses narrowed in June on the back of lower marketing expenses and payment processing charges. It clocked sales of Rs 3,186.80 crore in June compared to Rs 3,540.70 crore in June 2020. Net losses narrowed to Rs 1,701 crore from Rs 2,942.4 crore in the period under consideration. Total borrowings stood at Rs 476 crore in June compared to Rs 544.90 crore in June 2020.
201	201
202	202	It is worth adding that the anchor portion of the issue is likely to open on November 3, 2021. The share allotment is likely to take place on November 15, 2021, and the shares are expected to be listed on the bourses on November 18, 2021.
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204	204
205		-References
	217	+= References =
206	206
207	207	{{putFootnotes/}}