I took a position after the RBI ban. As assymetrical an opportunity as they come so couldn’t resist.
My thesis is that the payments bank is screwed but the major play was never the bank anyway. If it recovers, great but even if it doesn’t, I see them just partnering with other banks and insurance companies and do BAU just like they did with their own bank earlier. Their strength is the app and the active users along with the 5mil active sound boxes that they have. The data that comes with it is gold and provides opportunities for both cross sell and targeted advertising.
One to closely track over the next year to see if it’s the right call but with the cash on hand and the market cap being what they are, the downside is limited imo.
Disc – Invested.
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