I know my place as an investor.
IPO was mostly OFS therefore it was most likely set to be as expensive as possible.
Profitability is still distant. UPI is the future and is 100% Govt regulated. And I don’t like to invest where govt regulation is strong. (Banks are heavily regulated, but there is path to profitability and a proven track record)
App is great, super good. It is for the masses. Small ticket loans for everyday expenses is made easy. India being a Low credit penetrated country gives Paytm a hope for survival.
Being a loan intermediate is it’s primary revenue sources.
But, can it be replaced by Gpay, WhatsApp or Airtel/Jio app?
I feel as soon as there is profitability these players will jump in. Esp, these Mobile operators, they will start with giving some incentives/freebies and get people to convert to their apps. Most of the structure is already in place.
So, I feel, although PaytM is omnipresent, it’s survival might be at stake as the entry barriers are not high enough. Add to it the fact that it’s burning cash, makes it a time bomb.
Not invested, but curious. Invested only in Nykaa, of these new age stocks, since it doesn’t have all these overhangs.
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