PayTM (One 97 Communications Ltd)

Thanks @rpattabi
FLDG means “First Loss Default Guarantee”, when a fintech compensates lenders for loan default.
See this: RBI gives green signal to first loss default guarantee (FLDG) framework; here’s how will fintech, banks, NBFCs benefit | Mint

just checked PAYTM press release: https://paytm.com/document/ir/financial-results/fy2021-22/Paytm_Operating_Performance_Update_Dec21.pdf
No FLDG has been given.

so if no FLDG and contingent liabilities just 60 cr… then they have $1 billion cash. Thats a LOT of cash

so imagine Paytm from this perspective: its a NEW startup with following –

1. App with more than 100 million monthly active users.
2. Very high Top of mind brand recall in all urban cities.
3. Superb payment gateway and UPI QR code technology. 8million + soundbox merchant users
4. Aprox 7% stake in PayPay – No. 1 payment company in Japan (co promoter SoftBank and Yahoo Japan).
5. INR 8300 CASH warchest.

THIS startup is currently trading at just 2.74x of its cash reserves (mcap of ₹ 22,773 Cr. or $2.74 Bn).

Does Paytm merit a small % of your portfolio?

I think PAYTM now needs to use its cash wisely, maybe even buy some other cos.

Disc: invested in small qty for tracking.