Dec 09, 2019 paytm revenue initially generated from mobile recharge services, where they charge nil from their users but earn commission from network operators. Paytm is amongst the top 7 ecommerce companies in india to have billiondollar valuation and transformed the business model of paytm from a recharge web site to a payment cum ecommerce marketplace. Paytm promotes the payments of recharges and bills as it collects a commission from the network provider. Nov 22, 2019 information on its revenue model the companys important events and milestones. While it is important to note while reading this is that paytm is not your traditional ecommerce cum payment gateway player, it is a full. Paytm an elevate in the indias money exchange economy and constrained individuals, and. Paytm mall is an online marketplace that allows users to shop for electronics, home appliances, automotive and personal care products. The ecommerce and financial technology company has been a. It identifies which revenue source to pursue, what value to offer, how to price the value, and who pays for the value.
It has 100 million paytm wallet users that carry out over 75 million transactions every month 2. Understanding squares business model the motley fool. Abstract information technology sector in india is making progress at rates way beyond what was expected 30 years back. Learn how paytm makes money and what are the different revenue sources. Oct 28, 2018 customer relations in the paytm business model.
We may be using paytm extensively everyday, but have we ever thought harder about how exactly the platform works. Paytm is a sales channel for businesses willing to sell their products online. Revenue can be generated from a myriad of sources, can be in the form of commission, markup, arbitrage, rent, bids, etc. An overview the electronic commerce, or ecommerce, marketplace continues to grow, as more consumers prefer the convenience of purchasing goods online. One97 communications ltd, the parent firm of paytm, reported a revenue of rs 8. One97 communications, which is the parent entity of digital payments company paytm, has reported a net revenue of rs 8. Squares primary revenue contributor is its core payments processing business, which accounted for almost 83% of the companys fy 2015 total gross revenue.
Has vijay shekhar sharmas paytm bitten off more than it can. At present, paytm claims over 218 million active wallet users on its platform. Paytm parent reports rs 814 crore revenue for 201617 vccircle. One97 communications ltd, which owns indias largest digital payments company paytm, has reported revenues of rs 8. Paytm is the leading alternative payment solution in india. Paytm makes commissions from the customer transactions through their usage of its platform. Paytm did not disclose the net profit or loss figures for the year. All of us are aware of the slogan paytm karo in a quintessential voice. Revenue model of paytym a revenue model is a framework for generating revenues. Paytm also did a secondary round last month, which saw its valuation soar to usd 10 billion.
Paytm meaning pay through mobile and pronounced similar to atm is an indian ecommerce payment system and financial technology company, based out of noida, india paytm is available in 11 indian languages and offers online usecases like mobile recharges, utility bill payments, travel, movies, and events bookings as well as instore payments at grocery stores, fruits and vegetable shops. Paytm revenue initially generated from mobile recharge services, where they charge nil from their users but earn commission from network operators. Paytm revenue recorded 38% increase in fy17 while losses. Paytm aims to have 100 million mobile users by 2016 from 20 million now. Heuristic analysis of growth of paytm pranjal dixit, ashu prakash, tushar tiwari for the course of development economics, indian institute of technology kanpur. Nov 21, 2017 lets make your business digital with lapaas.
As a result, paytm is amongst the top e commerce companies in india. The company one97 as a whole has several revenuegenerating practices, ecommerce being the most important. There was a time when paytm business model consisted just mobile recharge and bill payment services. The shoppers started utilizing computerized installment modes and paytm is currently enrolled as a safe versatile wallet and is slowly expanding its relationship with more providers. Creating revenue and growth forecasts can be one of trickiest parts of business planning and fundraising for startup entrepreneurs. The company has transformed itself into one of the indian giants. One 97 communications limited, also popularly known as paytm, is an unlisted public company. Can someone explain the business model of companies like paytm. It started in 2010 and is a brand of the parent company. Notice is hereby given that the nineteenth annual general meeting of the members of one97 communications limited the company will be held on monday, september 30, 2019at 09. Online recharge, bill payments, entertainment, travel tickets and more at paytm. Paytms revenue model, diversification, ability to collaborate with other financial service providers and propensity to expand consumer base have helped it.
Paytm is actually a payment system via the electroniccommerce medium. We are committed to grow this business further and turn it into a profitable business in the years ahead. Apr 27, 2017 digital payments company paytm has reported 1. Paytm malls headquarters is located in noida, uttar pradesh, in 201. Let us discuss other services before moving on to ewallet and banking. This case frame, based on a 2page advertisement of paytm in the economic times november 3rd 2015, has been constructed to understand the basic business building blocks of a mobile wallet company like paytm and also to examine the cashback scheme. A commercial center model and a revenue based s how which gives clients an opportunity to sav e money choice, energizes, charge installments, cashbacks when things are acquired, installment arrangements, digital. Ist at its registered office at first floor, devika tower, nehru place, new delhi. There are other revenue lines as well that paytm has. Four years later, the company launched the paytm wallet, which can now be used for both online and instore payments. Owned by one97 communications, paytm initially began its operations as an ecommerce marketplace in india in 2010. You can see all of paytm s business model in the top half of their website. Paytm changed the way indians spend but its business model could just face its biggest challenge yet.
Paytm is the shining star of ecommerce marketplace and. Lets talk about how paytm earns revenue through each of these verticals. The firm, backed by softbank and alibaba, has expanded to several new businesses in recent years, including paytm mall, an ecommerce venture, social commerce, financial services arm paytm money. Paytm has got extremely high brand awareness across india. Paytm reported revenue of inr 336 crore and loss of inr 372 for the fiscal year 20142015, as compared to revenue of inr 210 crore and loss of inr 6 crore for 202014. There was a time when paytm was into mobile recharge, bill payments only but today they have 8 revenue models. Started by vijay shekhar sharma in 2010, paytm changed its business model to a virtual bank model, marketplace and gold ewallet. The company maintains an open culture where everyone is a handson contributor and feels comfortable sharing ideas and opinions. Working as a bridge between restaurants and customers, swiggy utilizes an innovative technology platform that works as a single point of contact their app allows urban foodies to order food from nearby restaurants and get it delivered at their doorstep. Online mobile recharge was the only thing which paytm provided back in 2010 and its business model to generate revenue is quite simple. Paytm competitors, revenue and employees owler company. Scope in august 2010, paytm was launched as online marketplace by one97 communications.
We offer mobile payment solutions to over 7 million merchants and allow consumers to make seamless mobile payments from cards, bank accounts and digital credit among others. Paytm was able to scale up its business quickly after demonetization. Paytm, though started as a recharge service provider in 2000, has changed its business model to a marketplace and a virtual bank model. Paytm architecture high level technical architecture for e commerce. Paytm is a payment gateway that provides payment services to merchants and allow consumers to make seamless mobile payments from cards, bank accounts, and digital credit among others. In may 2018, it posted a loss of approximately rs 1,800 crore with a revenue of. International journal of pure and applied mathematics volume.
It has 100 million paytm wallet users that carry out over 75 million transactions every month. When contacted, a company spokesperson told toi in an emailed response, the technology sector needs frontloaded investments with a longterm vision for profitability. Paytm payments bank with the aim to bring banking and financial services access to halfabillion unserved and underserved indians. The revenue model is divided into the following categories. Following is the total coverage of the topic on paytm business model and how does paytm work, we will include the direct and indirect revenue lines used by one97 its parent company. On the other hand, nasdaqlisted facebook, which takes into account the calendar year, reported a revenue of usd 40. The same year, paytm launched an app for canadian mobile phone, cable, internet, electricity and water bill payments. The company has 11 directors pallavi shardul shroff, ravi chandra adusumalli, and others. There was a time when paytm was into mobile recharge, bill payments only but today. Paytm mall scores over 100% jump in revenues for fy18. In this paytm case study, well discuss 8 revenue models of paytm. The business model of paytm from a recharge web site to a payment cum ecommerce marketplace.
We have created paytm as a popular brand and platform which provides ease of online marketplace, mobile wallets, recharges and payment gateways aggregator services, payments banking services etc. Having a service connected directly with a wallet is what paytm believes will be a differentiator in ecommerce as well. Like paytm, freecharge also operates in the transaction services industry. E wallets company business model how e wallet earn. Heuristic analysis of growth of paytm semantic scholar. International journal of pure and applied mathematics. Pdf information technology sector in india is making progress at rates way beyond what was expected 30 years back. A revenue model includes every aspect of the revenue generation strategy of the business. Paytm is indias largest leading payment gateway that offers comprehensive payment services for customer and merchants. Check out paytm business model using business model canvas and learn how paytm makes money and its revenue model. Paytm business model case study how paytm earns paytm 6.
Working as a bridge between restaurants and customers, swiggy utilizes an innovative technology platform that works as a single point of contact. The company one97 as a whole has several revenue generating practices, ecommerce being the most important. But it is very difficult to decide which one is the right way to move ahead. Mar, 2020 the business model canvas of swiggy is based on a hyperlocal ondemand food delivery business operation. Paytm does not do customer relations with its users. May 10, 2016 having a service connected directly with a wallet is what paytm believes will be a differentiator in ecommerce as well. Jan 08, 2017 all of us are aware of the slogan paytm karo in a quintessential voice. Paytm seemingly is trying to plug a big hole in the banksdominated payment solutions market. It started its operations as a b2b organisation but realised the importance of customer participation and opened b2c option also. On the one hand, it is attempting to mame online shopping possible even for humblest of shoppers without credit cards, by offering many other ways to pa. In july 2015, paytm introduced p2p money transfers, allowing users to transfer money to anyone using their paytm wallet. Feb 08, 2017 in this video you will see summary of paytm with business model and sources of revenue. These numbers are likely to change dramatically once you get.
Marketing mix of paytm paytm marketing mix and 4 ps. Paytm is indias largest mobile payments, ewallet, and commerce platform. But one must really look at the revenue model of the company to understand whether sharmas plans are warranted, especially when digital payments and ecommerce arm of paytm reportedly incurred. Paytm swot analysis paytm strengths below are the strengths in the swot analysis of paytm. The business model canvas of swiggy is based on a hyperlocal ondemand food delivery business operation. You can see all of paytms business model in the top half of their website. Paytm s payment arm had controlled its losses while improving revenue by significant 38. Paytm s main revenue source, in 2017, is their ewallet service. Payment gateways charge about 23% to paytm on every transaction depending on volumes, so paytm can make differential money on every transaction. Paytm reported a revenue of inr 337 crores in fy 201415 with a loss of inr 372 crores.
In 2018, it set up paytm money to build investment and wealth management offerings for its users. Paytm mall competitors, revenue and employees owler. It is also one of the pioneers of the cashback business model. It was incorporated on 22 december, 2000 and is located in new delhi, delhi. That will cover 23 modules of business and digital marketing like seo, sem, email marketing, social. Jun 07, 2015 basically the paytm adopt the paid circulation subscription revenue model to generate the revenue in their business. Escrow accounts escrow accounts from where it generates its revenue. This is a growth of 60% from a revenue of inr 210 crores in the previous financial year when had also. Pdf a study on paytm services in promoting cashless economy. It has no telephone or publicly available email or chat functionality. Paytm business model is a marketplace model which also deals in recharge. So far whatsapp had no revenue model, why has it pushed. Both the companies are doing well and have become giants in just 5 years since their inception. It also launched the paytm for business app, allowing merchants to track.
Paytm offered mobile recharging and later added bill payment like payment of dth, electricity and broadband along. We pioneered and are the leader of qr based mobile. The major paytm income source is its ewallet services along with the considerable share from the ecommerce segment. Paytm has a marketplace model which also deals in recharge, bill payments and also provide ewallet and banking services. Why dont we talk about the extremely successful business. Please subscribe for more interesting stuff and do drop in comments in the section below. They make commissions from the retailers for every transaction that is made through the wallet.
Though started as a recharge platform in 2010, paytm has subsequently changed its business model to a marketplace and a virtual bank model. Let us first discuss their revenue model one by one. Paytm one 97 communications limited company information. This is common to other ecommerce sites which focus on driving down their cost base. Freecharges headquarters is in new delhi, delhi, and was founded in 2010. Mobile payments firms in india are now scrambling to make.
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