Kiara Advani
Newsmen Explainer | What is a Digital Currency and how will it revolutionise India’s FinTech sector?
Finance Minister Nirmala Sitharaman announced in the Budget 2022-23 that the Reserve Bank of India will issue Central Bank Digital Currency (CBDC) by in FY23. She said that this move “will give a big boost to digital economy (and this) currency will also lead to a more efficient and cheaper currency management system.” Hence, it is important to know what is this CBDC, why is this being hailed as a move towards fintech revolution and how is this different from private currencies such as cryptocurrencies. Here’s an explainer.
Paytm Q3 results: Revenue up by 89% to Rs 1,456cr, losses reducing while financial services ramps up rapidly
During the October-December quarter, the company saw its revenues jump by 89 per cent y-o-y to Rs 1,456 crore, EBITDA losses (before ESOP expense) came down to Rs 393 crore from Rs 488 crore during the same quarter in the previous year. This revenue increase was led by high monetization and growth in merchant payments through MDR-bearing instruments, new device subscriptions, and loan disbursements.
Paytm's businesses won't be impacted by upcoming regulations in digital payments: Analysts
Additionally, Paytm's several businesses from banking, wealth management to insurance are already businesses that are required to be compliant with regulators. The company's focus on transparency defines its products and also helps to build trust with regulators and other stakeholders.
Paytm shares rebound after all-time low, settles up 8%
Notably, the shares hit an all-time low of Rs 1,000 recently. On Friday, the shares settled 8.2 per cent up at Rs 1,116 per share. Brokerage house Macquarie in its latest report lowered its target price for the share to Rs 900 from Rs 1,200 and retained its 'underperform' rating.
Paytm's IPO braved stock market when global fintech was drowning
Overall, Paytm IPO is the 4th largest fintech stock debut. "Paytm, which opened at an offer price of Rs 2,150 braved the markets on a tough day and its share price was also impacted. But Paytm came out stronger than how most other fintech companies fared during the same time," said Dr Ravi Singh, Research Head, Share India.
Paytm stock hits new low
The stock was down 2.58 per cent in trade and has continued its losing spree after a recent downgrade by Macquarie. Foreign brokerage Macquarie said on Monday there are no signs of headwinds abating at Paytm as it slashed the target price to Rs 900.
Paytm stock hits all-time low
Manoj Dalmia, Founder and Director at Proficient Equities Private Limited said Paytm Share plunged by 6 per cent and is further down 1.48 per cent making its all-time low.
Dalmia said Paytm's payment business accounts for about 70 per cent of revenue, which will be under threat if there are any regulatory changes. Also, its entry into insurance sectors has been rejected by regulators.
IPO fund raising all-time high at Rs 1.18 lakh crore
This was nearly 4.5 times Rs 26,613 crore raised through 15 IPOs in 2020 and almost double of the previous best year 2017 in which Rs 68,827 crore was raised. IPOs from new age loss-making technology startups, strong retail participation and huge listing gains were the key highlights, according to Pranav Haldea, Managing Director, Prime Database Group.
Paytm listing debacle sparks concern from investors for other IPOs
The debacle has put the spotlight on Paytm, its shareholders SoftBank and Alibaba, and bookrunners on the IPO including Goldman Sachs, Morgan Stanley and Citigroup. "The worry for all of us is does this impact the broader India tech sentiment? One bad deal and one instance of bad judgment can upset the apple cart," said the head of equity capital markets for India at one western bank.
Paytm posts Q2 results, revenue from ops up by 64% to Rs 10.9 bn
The company's contribution profit grew to Rs 2.6 billion in Q2 FY 2022, year-on-year increase of 592 per cent. The contribution margin jumped to 24.0 per cent of revenue from 5.7 per cent the previous year.
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