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Is Profitability Too Far For Paytm Now?

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After Mobile Payments, Paytm Wants To Disrupt Small Credit Segment In India
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Just when Paytm was on the path of profitability, another obstacle came towards the Vijay Shekhar Sharma-led fintech major. 

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Paytm Launches Alternate ID-Based Guest Checkout Solution
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Reports emerged a few weeks ago, that Paytm will be halting their Buy-Now-Pay-Later postpaid feature. 

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Paytm Slumps Nearly 5% On Large Block Deal Buzz
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Paytm addressed these reports by claiming that they will be recalibrating the portfolio origination of less than INR 50,000.

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Paytm Announces 1.7 Mn Additional ESOPs

"While we’ll continue to do postpaid, and it may not be the same growth level that we were doing earlier, it will be significantly lower than what we were doing earlier, but it will be a product that will continue.” said Paytm.

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Paytm Slumps Nearly 5% On Large Block Deal Buzz

This measure was used as a response to recent RBI directives asking banks and NBFCs to increase the amount of cash banks need to reserve to service risky loans.

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Paytm Deploys More Than 10,000 Devices To Digitise Payments At Gram Panchayats

But why is this recaliberation a speedbump? Loans under INR 50,000 made up to 75% of the total disbursements by Paytm, which are now out of picture.

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Paytm Launches New Soundbox To Enable Card As Well As QR Code Payments

The postpaid meant alot to Paytm’s young users without credit cards. Eventually, Paytm’s market cap tumbled from INR 55,256 Cr to INR 41,373 Cr in a week, a fall of 25%.

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Paytm Touches 52-Week High Intraday, Street Remains Bullish On The Stock

As lending was one of the main factors of Paytm’s revenue growth, Paytm now has to rely on adding more partners for its personal and merchant loans.

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Warren Buffett’s Berkshire Hathaway Exits Paytm By Offloading 2.5% Stake

What do you think, can Paytm refocus?

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