Sources said that the talks are still in the early stages between Airtel and Paytm, and the deal may not materialise. “We remain fully focused on our strong organic growth journey and are not involved in any such discussions,” a Paytm executive was quoted as saying. Bharti Enterprises refused to respond to Bloomberg’s request, citing market speculation. Sources told Techcrunch that this is not the first time that Bharti Airtel has engaged in deliberation with Paytm to sell its fintech unit.
It was not immediately clear what could be the reason behind such a move. However, the deal could likely be led by considerations related to the overlap between the customers of both Airtel Payments Bank and Paytm Payments Bank. Besides, Airtel’s payments bank is a profitable entity and could give more heft to the financials of Paytm, which has been bogged down by mourning losses. The deal could also enable Paytm to leverage Airtel’s payments bank licence, as the fintech major is currently barred by the Reserve Bank of India (RBI) from onboarding new customers over gaps around its technology systems.
But the current climate has made a deal somewhat more enticing for the two firms. Shares of Paytm, which listed in 2021, are down by over 60% since debut. Paytm, once India’s most valuable startup, is among half a dozen consumer tech startups that has gone public in the past two years. But all the firms in the group, including Zomato, Nykaa and PolicyBazaar, have performed poorly in the public markets even as India’s benchmark index remains in green.
Paytm, which sought a valuation of over $19 billion in its 2021 listing, currently has a market cap of $4.8 billion. Walmart and General Atlantic-backed fintech startup PhonePe, which currently generates less than $400 million in revenue, is valued at $12 billion. Undeterred by the poor performance in the stock exchanges, Paytm founder and chief executive Vijay Shekhar Sharma has pledged to reach profitability by this year and get to $1 billion in annual revenue by March.
Sources said that the addresses are still in the early stages between Airtel and Paytm, and the deal may not materialise. “ We remain completely concentrated on our strong organic growth trip and aren’t involved in any similar conversations, ” a Paytm superintendent was quoted as saying. Bharti Enterprises refused to respond to Bloomberg’s request, citing request enterprise. Sources told Techcrunch that this isn’t the first time that Bharti Airtel has engaged in deliberation with Paytm to vend its fintech unit. It wasn’t incontinently clear what could be the reason behind such a move. still, the deal could probably be led by considerations related to the imbrication between the guests of both Airtel Payments Bank and Paytm Payments Bank. Besides, Airtel’s payments bank is a profitable reality and could give further heft to the financials of Paytm, which has been embrangle down by mourning losses. The deal could also enable Paytm to work Airtel’s payments bank licence, as the fintech major is presently barred by the Reserve Bank of India( RBI) from onboarding new guests over gaps around its technology systems. But the current climate has made a deal kindly
more enticing for the two enterprises. Shares of Paytm, which listed in 2021, are down by over 60 since debut. Paytm, once India’s most precious incipiency, is among half a dozen consumer tech startups that has gone public in the once two times. But all the enterprises in the group, including Zomato, Nykaa and PolicyBazaar, have performed inadequately in the public requests indeed as India’s standard indicator remains in green. Paytm, which sought a valuation of over$ 19 billion in its 2021 table, presently has a request cap of$4.8 billion. Walmart and General Atlantic- backed fintech incipiency PhonePe, which presently generates lower than$ 400 million in profit, is valued at$ 12 billion. Undeterred by the poor performance in the stock exchanges, Paytm author and principal superintendent Vijay Shekhar Sharma has pledged to reach profitability by this time and get to$ 1 billion in periodic profit by March.