Paytm Digital Wallet: Payment made easy since 2010

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Paytm Logo

Introduction

Paytm is an Indian e-commerce payment system and digital wallet company. It was founded by Vijay Shekhar Sharma in August 2010 and is based out of Noida, India. Paytm’s parent company is One97 Communications Limited.

Vijay Shekhar Sharma: Founder & CEO of Paytm Digital Wallet
Vijay Shekhar Sharma: Founder & CEO of Paytm Digital Wallet

Paytm started as a prepaid mobile recharge website. Currently, its business is not only limited to recharge, but has expanded as an online payment platform (digital wallet) including mobile recharges, utility bill payment, wallet payment, wallet to wallet, wallet to bank transfers.

Users can recharge their DTH, book movie tickets, pay insurance premiums, shopping bills, contribute to the charity of their liking, travel, events bookings, and get in the fast lane with Paytm FASTag; further, in-store payments at grocery stores, restaurants, parking, tolls, pharmacies and education institutions with the Paytm QR Code.

The M-commerce (mobile commerce) aspect of the portal lets several merchants list their products. This m-commerce store became the substitute for several apps.

Talking of mobile, you would not want to miss mobile marketing and advertising.

Paytm digital wallet is available in 11 Indian languages, which makes it a huge success in even tier-3 cities of India.

Paytm Karo!“— Catchy and lively, this jingle has made Paytm digital wallet a household name in India, especially after demonetization in the year 2014.

Key Executive Team of Paytm Digital Wallet

Kiran Vasireddy: CCO & SVP of Business of Paytm Digital Wallet
Kiran Vasireddy: CCO & SVP of Business, Paytm Digital Wallet
Amit Nayyar: President of Paytm Digital Wallet
Amit Nayyar: President, Paytm Digital Wallet
Madhur Deora:President, CEO and SVP of Paytm Digital Wallet
Madhur Deora:President, CEO and SVP, Paytm Digital Wallet
  • Vijay Shekhar Sharma: Founder & CEO
  • Kiran Vasireddy: CCO & SVP of Business
  • Amit Nayyar: President
  • Madhur Deora: President, CFO and SVP

Paytm Acquisitions / Subsidiaries

Company NameDateDeal Size
Raheja QBEJuly 06, 2020$76 m
Balance.techAugust 09, 2018
BTIAugust 09, 2018
NightStayJuly 03, 2018$20 m
Cube26June 19, 2018
TicketNewMay 23, 2018$40 m
LittleNovember 13, 2017
NearBuyNovember 13, 2017
Insider.inJune 20, 2017₹350 m
ShopsityNovember 11, 2016

Paytm Shareholders and Stakeholders / Investors

Shareholders—Year 2020

  • Alibaba (38%)
  • Softbank (20%)
  • SAIF Partners (20%)
  • Vijay Shekhar Sharma (16%)
  • Berkshire Hathaway (2.9%)

Stakeholders / Investors

ShareHolders CompaniesShare (Year  2019)Share (Year 2020)
Alibaba41.13%
21972739 shares
38.19%
21972739 shares
SoftBank/SVF India Holding (Cayman) Limited20.47%
1,13,26,223 shares
19.69%
1,13,26,223 shares
SAIF Partners20.48%
1,13,26,277 shares
~19.93%
1,13,26,277 shares
Berkshire Hathaway /BH International Holdings0%
0 shares
2.96%
17,02,713 shares
MediaTek Inc / Mountain Capital Fund L.P.1.10%
6,06,668 shares
0.76%
4,34,549 shares
One97 Employees Welfare Trust0.59%
3,26,639 shares
0.48
2,77,737 shares
Individuals:
Mr. Vijay Shekhar Sharma (Promoter/Founder)16.36%
90,51,624 shares
15.73%
90,51,624 shares
Mark Schwartz0.15%
83,597 shares
0.15%
83,597 shares

Some random facts about Paytm major stakeholders

  • Paytm raised around $60 million from another investor namely MediaTek.
  • For early investors Saama Capital and SAP, this could mean a return of more than 50x on the money they invested in One97 during 2011.
  • The percentage share of Vijay Shekhar Sharma is about 14%-16% as of now.
  • Paytm highest shareholder is Alibaba.
  • Paytm shareholder Alibaba’s biggest shareholder SoftBank owns about 26% of Alibaba.
  • Paytm raised $1 billion in a financing round led by US asset manager T Rowe Price in September 2019.

Major sources of Paytm revenue

Paytm deploys eight models of revenue, which let this digital wallet payment platform stay afloat and do well. These are: Interest, Advertisement and Commission.

Interest: Paytm generates four-six per cent from an escrow account in a nationalised bank. As per RBI instructions, Paytm wallet money goes into this account on which interest is earned.

Advertisement: Paytm sells its top banner slot and digital space on the app to various brands to earn money.

Commission: The portal charges a nominal sum for a commission in exchange for utility payments and recharges.

The merchant also needs to pay one per cent of commission to transfer wallet money to their bank account.

Several banking institutions and financial service providers are associated with Paytm to promote their products in exchange for a commission fee.

Payment Gateway Charges: Paytm has emerged as a secure, smooth and reliable payment gateway solution, for which, it charges 1.99 per cent on every transaction. RuPay cards are exempted from any transaction charge up to 10,000.

DigitalGold: A user can buy gold worth 1 from the payment network. This gold is stored in digital form and may increase or decrease in net worth as per the market. However, Paytm’s commission stays.

Paytm Bank: It operates like any other bank and earns revenue by selling its products.

Awards

Here’s a list of some milestones achieved by Paytm digital wallet:

2017

  • Paytm wins Diamond SABRE Award in Company Of The Year at SABRE Awards 2017
  • Paytm wins Diamond SABRE Award in Superior Achievement In Reputation Management at SABRE Awards 2017
  • Paytm wins Gold SABRE Award in Financial Professional Services at SABRE Awards 2017
  • Vijay Shekhar Sharma recognized among the 50 Most Influential Young Indians by GQ
  • Vijay Shekhar Sharma wins at Entrepreneur India Awards 2017
  • Vijay Shekhar Sharma named to the 2017 Time 100 List of Most Influential People in the World
  • Vijay Shekhar Sharma recognized as the Entrepreneur of the Year at The Entrepreneur’s Moneytech Awards 2017
  • Vijay Shekhar Sharma announced Data Quest IT Person of the Year.
  • Vijay Shekhar Sharma wins Forbes Top 40 Under 40 Award.
  • Paytm wins Best Digital Wallet award at the 11th IAMAI India Digital Summit.
  • Paytm wins Best Consumer Mobile Service award at the 11th IAMAI India Digital Summit.

2016

  • Paytm wins ET Brand Equity Most Trusted Brand of the Year 2016.
  • Vijay Shekhar Sharma wins IMPACT Person of the Year Award 2016.
  • Paytm wins FT Future of Fintech Award.
  • Paytm wins Outstanding Startup of the Year Award at Forbes Leadership Awards 2016.
  • Vijay Shekhar Sharma wins Uttar Pradesh government’s top Yash Bharti Award.
  • Vijay Shekhar Sharma wins ET Panache Trendsetting Entrepreneur Award.
  • Vijay Shekhar Sharma chosen as Entrepreneur of the Year at ET Awards for Corporate Excellence.
  • Vijay Shekhar Sharma named Businessman of the Year at GQ Men of the Year Awards.
  • Paytm wins the Mobile Wallet Provider of the Year Award in the B2C category at the Frost & Sullivan Awards Ceremony.
  • Paytm receives ET Telecom Game Changer of the Year Award for 2015.
  • NDTV Indian of the Year Award for Paytm CEO Vijay Shekhar Sharma.

To see whole list of awards, please visit here.

Year 2017 and 2018: Big years for Paytm

2017

  • This year, the fintech portal saw extraordinary growth as it was downloaded for more than 100 million times and became India’s first payment app to achieve that.
  • The portal also launched Paytm Gold in 2017, where users could buy pure gold as per their capacity starting from Re. 1.
  • Paytm Payments Bank was launched.  The fintech unicorn also initiated, ‘Inbox,’ an in-app chat messaging platform that enables faster resolution of complaints and 24/7 support.
  • One97 Communications Limited got funding from the venture capital firm SAIF Partners, which was its first institutional investor.
  • Paytm raised $1.4 billion from Japan’s Softbank and was valued at $8 billion.
  • Paytm launched an app for Canada for utilities and bill payments.

2018

  • The e-retailer saw an unprecedented acceptance across the country as it let the merchants accept payments via UPI, cards and Paytm into their bank account directly. No charge was levied for any payment method.
  • The Paytm for Business app was also launched this year, which was later rechristened to Business with Paytm. Unlike any other app, the merchants could settle their payment instantly and keep track of it. This move shot its merchant base to more than seven million by March!
  • As of January 2018, it was valued at $10 billion owing to the investment of $300 million by Warrant Buffett’s Berkshire Hathaway. Though, an official statement by Berkshire confirmed that Buffett wasn’t involved in the deal.
  • Paytm signed up for the Umpire Partnership of the IPL for consecutive five years.
  • Paytm Money was established to build investment and wealth management solutions to the users. It aimed to bring market funds and mutual funds to the Indian masses.
  • Gamepind was launched in a collaboration between Paytm and Alibaba owned AG Tech Holdings Limited as India’s largest gaming and quizzing destination.

Enjoyed reading about Payment Digital Wallet? You can read more case studies here.

Sachin Vishwakarma

Sachin Vishwakarma

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