Paytm is a company that helps people in India make payments and do other things like shopping and booking tickets on their phones.
It used to have a big company from China as its owner, but now the person who started Paytm, named Vijay Shekhar Sharma, owns the most shares. This is a good thing because it means that Paytm can make more money and be successful. This is also good for other startup companies in India because it shows that it’s important to make a profit and not just focus on growing really fast. If Paytm can make a profit, it will be a big success for the startup community in India.
The main takeaway is that Paytm’s potential profitability is a positive sign for the Indian startup ecosystem. It shows a shift from growth at all costs to growth with profitability, which is important for the long-term sustainability of startups in India. If Paytm achieves profitability, it would be a significant win for both the startup ecosystem and India as a whole.
Paytm Box Made ₹500 Crore
Since 1999, Elon Musk has been trying to create a warm stop. Everything’s to work for all financial needs. He tried that with Paypal and now he’s trying it again with Twitter. But just like Indian mom say we already have a super raft like that in India. You can make payments, book tickets, recharge your fast tag, borrow loads and even all the food from it. I am talking about Patiem, which is based intense criticism over the last few years.
Go to see off its paid IPO which burn massive investor wealth, but in the recent quarters it seems like Patiem has been making a comeback. Its talk is more than 50 percent up this year and the recent quarterly report say that Patiem has achieved operational profitability. That is, the revenue from the core businesses are more than their operational cost, according to the Patient founder VJ Shaker Sherma. This puts Patient on track to become cash flow positive by the year end. So in today’s video I want to break down 3 things for you.
LEVEL 1
You can pick your motherboard, your Rams, your GPU and all the other pass. You can literally combine all your favorite part and make your dream PC and if you are somebody who likes to see what the Pcs can look like you can go to the Instagram and you will find some of the coolest looking Pcs and cases and guess what if you like any of them you can literally just buy the same one from them and that’s exactly what some of our team members also did.
LEVEL 2
packaging, but the MVP in has got that also handled. They’ve been shipping bold class species across India for 8 years now and on top of this they also offer a 3 year doorstep voluntee with towards in Grigao, Hyderabad and Bengaluru so do not let your hardware hold you back. Get your PC from the MVP in now back to the video now as I mentioned, Playtime is not just a payment sap but a super rapper, consumers and merchants and it makes money in 3 ways starting with payment services which is basically its cash cow making a 4. 62 percent of its revenue. Second is financial services which is its fastest growing segment and 3rd. Is cloud and commerce. Its unique advantage. Let me expend payment services. Payment services are basically of 2 kinds. One is your processing fee and second is a subscription fee. This is how processing fee works. Think of Paytom like a middle man. It basically helps transfer your money from your account, a wallet with the shopkeeper’s account and the same transactions between a consumer or merchant. It charges the fee. Now you as we like wait.
PAYTM BOX MADE 500CR
Paytm does not charge me any money on UVA payments. That is absolutely correct, but a little more complicated than that. So I’m going to explain this through 4 levels. First is your empty level merchants who can accept payments UPI to UPI for free using their mobile QR code or printing that onto a sticker. This is for your regular people like auto drivers, Kirana store owners, etc. This can be level 2. Let’s say that this Kirana store owner levels up to become a small retailer or a small grocery store and for this previously retailers needed a cash here to sit, count money and give back change, but now you have the patient songbox, now this is much cheaper for the store owner than a cashier salary, but still cost this owner some money as thought is a one time cost it’s a subscription. The installation cost of this patient soundbox is 300 repeats and the subscription V is 1. 25 repeats per month and this is the biggest surprise. Out of all its revenue sources, this little sound box, which according to the Indus Valley Annual Report
LEVEL 1
has been sold million times in the past few quarters, accounting for 8 percent of its overall revenues. Now let’s come to level 3. The small retailers business starts booming and he’s scaling up again. Now he needs to start accepting credit card and debit cards, and for that he needs a card machine or post device and depending on which card or wallet the customer pays with Fatium charged a small percentage of the fee to the merchant.
This is called a merchant discount rate or MDR Ridge, which varies from 1.4 percent to 1.99 percent and so on. Now, along with the processing charge, the merchant also has to pay for the subscription charge for the device, and Patium has 3 types of cost devices, all with their own one time payment and subscription fees which you can see here.
Now let’s come to level 4. Finally, if this business scales again and goes online, pataem charges the merchant a platform V along with MDR and subscription which keeps changing on different scales. Now Patam has found a genius way to on both small merchants and get the best out of bigger merchants,
LEVEL 2
the small merchants who offer Pataymap or Songbox, not just the brand. we can give you analytics and insights from all the payments of the distance and helps the merchant make decisions like which good studio stock up next, which brands the customer favorites all based on hard data and regardless of how the merchant’s business is doing. Pateom still makes money with the subscription model. In fact,
the total merchant subscription skyrocketed from 29 to 68 lack in financial year 2023 Then there the financial services vertical. 2 years ago this vertical made 1.
LEVEL 3
28 crores which made up for just 5 percent of the total revenue, but now it makes 1540 crows and 19 percent of patients revenue. This motocus says many financial products like wealth management, insurance services and mainly loans. Here again, patient is just a middleman using the worst network of users and connecting them to lending partners like HTFC, Sheran Finance and Hero Princop. Watium basically earns money from these loans by charging a small processing fee to both its loan partners and the consumer merchants among the loaner distributes. Watium has seen demand for small ticket, personal and post paid loans for all the most since bands often tend to. Ignore them. This is because Radium understands how price sensitive the Indian market is so through their BNPL platform Radium postpage, Radium offers loan as lowest 250 dupies and this segment makes it for the majority value of loans compared to merchant and personal loans. On top of this, with retail lendings that to become a 1 trillion market in India,
LEVEL 4
patiem designed to disrupt the small credit learning space by improving their products and Textac with the help of AI.
Lastly, we have the cloud and commerce division here Patiem makes money be selling travel, movie and event tickets to consumers in which it charges the convenience fee and I’ll tell you .
According to a Red Sea report in 2020,
Patium was the second largest movie booking platform after Book My Show in India. On the merchant side.
It says marketing and advertising services to SME, Stelleycoms and other enterprises with GMV as a key metric which grew 10 percent year on year in the most recent quarter.
Now that we know how and where it makes its money, let me tell you, where does FATEM spend all that money and how did they become operationally profitable? Well over the past few years, FATEM has consciously done 3 things versus reduced indirect cost and expenses in the last 04:56 quarters.
Patium has kept these costs steady at Thousand Crows, which a venue has continued to grow in that it cost made 60 percent
revenue PAYTM
quarter 1 on financially a 2022, but in the recent quarter it made of just 45 percent of the revenue. The second thing is reliability. Apart from that, Fatium has created a solid textac which is made a reliable platform for users. You may ask how reliable? Well check out the Zeta from NPCI, which stage that its UPI failure rate is the lowest amongst its Pierce Thoris massive data collection.
Yours of doing business means Payton has collected massive amounts of merchant, consumer and payment data which has held it carved for itself by selling more personalized products to consumers and merchants. So does this mean that all is good for Payton. Well, the signs are positive, especially with BJ Shakersharma becoming its largest shareholder. Recently after buying out Chinese giant and Steak. Now let’s come to the last segment. What does this mean for the Indian Stara Pecosystem? See? We’ve always chest on the importance of running businesses profitably and when India Superap is doing its best to make a profit.
CON
This is a sign of India startup scene maturing from growth at all costs to growth with profitability. If Pretium does manage to achieve profitability, it would be a big win for the Indian Starabical system and the India growth story.
