Paytm Loses Sheen, CEO Vijay Shekhar Sharma Drops Out Of Billionaire List

Paytm Loses Sheen, CEO Vijay Shekhar Sharma Drops Out Of Billionaire List

SUMMARY

Paytm CEO's wealth stands at $999 Mn as against the peak of $2.35 Bn before Paytm’s IPO listing: Report

Since Paytm’s stock market debut on November 18 last year, Sharma has lost around INR 88 Cr daily.

This comes barely days after the RBI barred Paytm Payments Bank from onboarding new customers and ordered an IT Audit within the firm.

With Paytm stock in free fall, the fintech giant’s CEO and founder, Vijay Shekhar Sharma, has lost his coveted billionaire status.

According to a March 15 Forbes report, Sharma’s wealth stood at $999 Mn as against the peak of $2.35 Bn before Paytm’s IPO listing.  

Once the talk of the town, the fintech giant has seen its value erode by almost 70% from its issue price of INR 2,150. Since Paytm’s stock market debut on November 18 last year, Sharma has consistently lost around INR 88 Cr daily. 

On the day of its debut, the startup was pegged at INR 1.39 Tn ($16 Bn), ranking among the top 50 most valued companies in the country. 

A far cry from that now, the fintech major has, since then, lost nearly INR 1 Tn in market cap, ranking it at 112th on the list of most valued companies.

After the intraday trading on March 16, Paytm’s stock hovered around INR 634.80, 7.15% higher than the previous day.

What’s Behind The Tumble?

The startup has been marred by a string of controversies recently. On March 11, RBI had barred the Paytm Payments Bank from onboarding new customers, second time since its inception in 2015. The Central Bank has also ordered an IT Audit within the firm to conduct a comprehensive ‘system audit’.

The move was triggered after a Bloomberg report alleged that the startup’s servers were found to be sharing information with China-based entities that indirectly own stakes in the fintech giant’s unit.

While the company had vociferously denied it, the move triggered a barrage of troubles for Paytm. The report added that the flow of data to servers abroad was in violation of India’s rules.

Complicating the situation for Paytm is the fact that the startup is likely to apply for a small finance bank license in May this year. With the startup under RBI’s radar, the chances of approval for the license looks considerably dim.

Paytm Payments Bank was granted the approval to operate as a Scheduled Bank back in December of 2021. Being a scheduled bank allowed the fintech major to disburse loans and also eligible to apply for a small finance bank license. 

Paytm has also been pummeled by the ongoing market volatility in the market. Overall, Indian tech stocks have witnessed a major slump amidst an ongoing war between Russia and Ukraine. The situation has further been compounded by a major correction in the U.S public markets as well as prospects of interest-rate hikes.

In its Q3 FY22 report, the fintech major has reported that its losses had widened to INR 778 Cr. Interestingly, it also saw a revenue of INR 1,456 Cr from operations in the quarter, representing nearly an 88.6% rise during the same period in FY21.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Paytm Loses Sheen, CEO Vijay Shekhar Sharma Drops Out Of Billionaire List-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Paytm Loses Sheen, CEO Vijay Shekhar Sharma Drops Out Of Billionaire List-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Paytm Loses Sheen, CEO Vijay Shekhar Sharma Drops Out Of Billionaire List-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Paytm Loses Sheen, CEO Vijay Shekhar Sharma Drops Out Of Billionaire List-Inc42 Media
Paytm Loses Sheen, CEO Vijay Shekhar Sharma Drops Out Of Billionaire List-Inc42 Media
You’re in Good company