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PhonePe’s merchant app MAUs on rise as Paytm falls behind

EntrackrEntrackr · 1y ago
PhonePe’s merchant app MAUs on rise as Paytm falls behind
Medial

Digital payments platform PhonePe has managed to eclipse its arch rival Paytm by a decent margin in terms of monthly active users of its merchant app, according to data sourced from App Annie. The data was recorded between mid January to mid March. Paytm lost 20% MAU in the last quarter (between January and March), while PhonePe gained 20% during the same period. Roughly, Paytm’s MAUs stood at 9 million in March whereas PhonePe had around 11 million, as per the data. As of 2023, PhonePe and Paytm had over 37 million registered merchants base each. The recent actions by the Reserve Bank of India against Paytm appears to be the primary reason behind this as the company saw a sharp fall in active users after January this year. To recall, RBI had imposed restrictions on Paytm due to concerns regarding breach of and compliance with regulatory norms in January. However, Paytm later received permission from the National Payments Corporation of India (NPCI) to participate in UPI through the Third-Party Application Provider (TPAP) under the multibank model. This move enabled Paytm users and merchants to continue using UPI services, including autopay mandates, without interruption. A separate report also suggested that RBI’s diktat on Paytm has triggered a major shift in the digital payments landscape for kirana stores. The report citing a survey, conducted by Kirana club, revealed that more than 40% kirana stores have already switched from Paytm to other alternatives such as PhonePe, BharatPe and GooglePay. As per the survey, the exodus was likely to go up in coming months. PhonePe and Paytm did not comment on the story. Besides PhonePe, Khatabook’s merchant app also saw a sharp growth in terms of active users while BharatPe for Merchants remained flat in the past couple of months, as per App Annie data. Interestingly, the active users of Khatabook’s merchant app were inching closer to Paytm as of mid-March. Among the UPI-based consumer facing payments apps, PhonePe is far ahead of its peers and controls nearly 50% market share followed by Google Pay and Paytm Payments Bank with around 35% and 12% market share respectively.

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Paytm records 20% rise in monthly users in July-August, GMV up 43%

LivemintLivemint · 1y ago
Paytm records 20% rise in monthly users in July-August, GMV up 43%
Medial

In August 2023, Paytm disclosed that it disbursed loans amounting to ₹5,517 crore ($667 million) through its lending platform. The company also reported a 43% year-on-year increase in its merchant payment volumes (GMV) to ₹3 trillion ($36.3 billion) in July-August 2023, up from ₹2.1 trillion during the same period in 2022. Additionally, Paytm experienced a significant rise in GMV for non-UPI instruments like EMI and cards. The company's loan distribution business, in partnership with lending partners, grew by 137% year-on-year, with disbursements totaling ₹10,710 crore ($1.3 billion) in July-August 2023. The number of loans increased by 47% year-on-year, reaching 8.8 million during the same period. Paytm deployed 8.7 million devices as of August 2023, a year-on-year increase of 4.2 million devices. The company attributed its strong performance to its subscription-as-a-service model, which boosted subscription revenues, payment volumes, and merchant loan distribution. Paytm also emphasized its commitment to improving the credit quality of loans and highlighted reduced expected credit loss (ECL) figures for Paytm Postpaid. Despite potential subdued growth in the lending industry, Paytm remains focused on portfolio performance and plans to onboard three to four new lending partners in FY24.

Funding and acquisitions in Indian startups this week [08-13 Apr]

EntrackrEntrackr · 1y ago
Funding and acquisitions in Indian startups this week [08-13 Apr]
Medial

This week as many as 21 Indian startups raised nearly $105 million in funding. These deals include six growth-stage deals and 12 early-stage deals. Meanwhile one growth-stage startup and two early-stage startups did not disclose the amount raised. Last week, about 30 early and growth-stage startups collectively raised around $172.71 million. [Growth-stage deals] Among the growth-stage deals, the six startups raised $54.5 million in funding this week. Compliance automation platform Sprinto led the list with $20 million in funding. The list was followed by B2B waste management and recycling marketplace Recykal, Housing finance company AVIOM HFC, digital lender Axio, and medical diagnostics platform 5C Network which raised $13 million, $10 million, $6 million, and $3 million, respectively. Further, made-to-order furniture manufacturer Arrivae while D2C coffee brand Blue Tokai Coffee also and secured undisclosed funds this week. [Early-stage deals] Subsequently, 12 early-stage startups scooped funding worth $50 million during the week. AI cloud and platform-as-a-service startup Neysa spearheaded the list followed by AI-powered revenue enablement platform GTM Buddy, underwater visual inspection services provider Planys Technologies, underwater visual inspection services provider Planys Technologies, paediatric behavioural and developmental health firm Butterfly Learnings, and electric mobility platform AutoNxt Automation. The list further includes the full stack eyewear platform, EyeMyEye, health insurance assistance provider CalimBuddy, elder care startup Age Care Labs, healthcare startup PlatinumRx, and defence-focused deeptech startup Zulu Defence Systems among others. The list of early-stage startups also includes 2 startups that kept the funding amount undisclosed: Paytring and BlackCarrot. [City and segment-wise deals] In terms of the city-wise number of funding deals, Bengaluru-based startups led with 8 deals followed by Mumbai, Delhi-NCR, Chennai, Hyderabad, and Kanpur. Segment-wise, healthtech startups are on top with four deals. The list further counts e-commerce, fintech, SaaS, Deeptech, and EV startups among others. The complete breakdown of deals across cities and segments can be seen below: [Series-wise deals] During the week, Seed funding deals are on the top spot with six deals while Series B deals are on the second position both forming around 52% of the total funding. Further, Series A, Pre-Series A, and Debt are next on the list among others. [Week-on-week funding trend] On a weekly basis, startup funding plummeted nearly 40% to $105 million as compared to around $170 million raised during the previous week. The average funding in the last eight weeks stands at around $243 million with 25 deals per week. The week-on-week funding trend can be seen below: [Departure] During the week, Surinder Chawla, the managing director and chief executive officer of Paytm Payments Bank, stepped down from his position, according to the disclosure filed by the associate entity One97 on the National Stock Exchange. [Fund launches] Three startup-focused funds were launched this week. Cornerstone Ventures, a venture capital firm, announced the launch of its second fund targeting $200 million with a green-shoe option of $50 million. Filter Capital, a technology-focused investment firm, closed its first fund at Rs 800 crore (approximately $96 million). Synapses also launched a $125 million VC fund at IIT Delhi’s Research and Innovation Park to back startups. [Layoffs] Tech upskilling startup Scaler has laid off approximately 150 employees, attributing the decision to a focus on long-term growth and sustainability. Co-founder Abhimanyu Saxena stated that the company is reevaluating its operations to achieve sustainable growth while ensuring the best learning experience for its users. [ESOP Buyback] Comfort-tech brand The Sleep Company announced the second tranche of ESOP (employee stock ownership plan) buyback for its employees this week. The current buyback will benefit a total of 105 employees, including 50% of women employees. [Mergers & Acquisitions] This week, Ghost Kitchens India acquired Shy Tiger Brands, a cloud kitchen company from Ahmedabad. Meanwhile, the National Investment and Infrastructure Fund (NIIF) acquired majority stakes in iBUS, a digital infrastructure solutions company, in a $200 million deal. Additionally, Symphony Technology Group (STG) acquired Eka Software Solutions, a Bengaluru-based commodities trade and risk management (CTRM) software company, with plans to merge it into STG’s portfolio company Quor Group. Postman also acquired SaaS platform Orbit during the period. [New launches] ▪️ Reliance-owned Tira forays into beauty accessories, launches ‘Tira Tools’ ▪️ Flipkart rolls out bus booking services on its app ▪️ Agritech startup DeHaat launches agrifood consumer brand ‘Honest Farms’ [Financial results this week] ▪️ Ripplr posts Rs 740 Cr gross revenue in FY23; controls losses ▪️ Power2SME gross revenue crosses 1,000 Cr in FY23; cuts losses ▪️ Portea’s revenue stays flat in FY23; losses grow 32% ▪️ MoneyView posts Rs 577 Cr revenue in FY23; profit spikes 27X [News flash this week] ▪️ Swiggy offers 20% discount to HNIs in pre-IPO deal ▪️ Invesco marks up Swiggy’s valuation to $12.7 Bn ▪️ IPO-bound Swiggy converts itself into a public entity ▪️ PhonePe’s merchant app MAUs on rise as Paytm falls behind ▪️ Ola, Uber unveil subscription-undefined models for auto drivers ▪️ Ola ceases operations in UK, Australian, and New Zealand markets [Conclusion] The rally of ups and downs continues as after a significant rise in funding, the weekly funding again shrank close to 40% this week. The week saw three fund launches namely Filter Capital, Cornerstone Ventures, and Synapses. The week saw another layoff as tech upskilling startup Scaler reportedly fired a part of their workforce. Swiggy is gearing up for its IPO after the upcoming Lok Sabha elections, having recently converted into a public entity. The company has shortlisted bankers for its IPO syndicate and is offering shares to high net-worth individuals at a 20% discount on its current valuation of over $12 billion. This move follows a recent markup in Swiggy’s valuation by US-based investor Invesco. PhonePe has surpassed Paytm in terms of monthly active users (MAUs) of its merchant app, according to data from App Annie recorded between mid-January to mid-March. Paytm experienced a 20% decrease in MAUs in the last quarter, while PhonePe saw a 20% increase. In March, Paytm had approximately 9 million MAUs, whereas PhonePe had around 11 million. In another development, Indian ride-hailing giant Ola has exited from the UK, Australia, and New Zealand, marking the end of its six-year stint in these markets. The decision reflects a strategic shift, with Ola focusing on its rapidly growing and profitable ride-hailing business in India. Meanwhile, Ola and Uber are shifting gears by offering subscription-based plans for auto-rickshaw drivers, a strategy reminiscent of their competitors Namma Yatri and Rapido. Instead of the traditional booking fee or commission per transaction, these plans aim to provide more stability and incentives for drivers.

Paytm Payments Bank | Latest & Breaking News on Paytm Payments Bank | Photos, Videos, Breaking Stories and Articles on Paytm Payments Bank

Money ControlMoney Control · 1y ago
Paytm Payments Bank | Latest & Breaking News on Paytm Payments Bank | Photos, Videos, Breaking Stories and Articles on Paytm Payments Bank
Medial

Paytm Payments Bank has been in the news lately due to various issues surrounding its license and compliance with regulations. According to the Financial Intelligence Unit, the bank failed to implement a mechanism to detect and report suspicious transactions as required under the PMLA. Speculations over the revoking of Paytm Payments Bank's license have caused its stock to fall. Additionally, the controversy has led to a drop in Paytm's UPI market share. The bank has been fined for violating the PMLA. Despite efforts to cut ties with the bank, Paytm still relies on it in multiple ways. The board of Paytm's parent company has approved the termination of agreements with Paytm Payments Bank. Various financial changes, including restrictions on Paytm Payments Bank accounts, may impact users. Paytm's stock has been in decline and Yes Bank has expressed interest in acquiring the merchant accounts of Paytm Payments Bank. Paytm's efforts to resolve the issues with the regulator are seen as a delay tactic. A Paytm employee committed suicide due to fears of job loss. The board of Paytm Payments Bank has been restructured and the bank has faced various restrictions and an extended deadline for compliance. Despite setbacks, merchant loyalty to Paytm remains intact. Paytm's stock has shown some recovery but Goldman Sachs has reduced its target price. The decline in daily downloads of the Paytm app has been noted, while rival BHIM UPI has seen an increase. Overall, Paytm Payments Bank is facing significant challenges and uncertainties.

Paytm hits milestone of 100 million monthly transacting users

OutlookIndiaOutlookIndia · 1y ago
Paytm hits milestone of 100 million monthly transacting users
Medial

Fintech platform Paytm has achieved a significant milestone of crossing 100 million monthly transacting users. The company reported strong revenue growth, driven by accelerated GMV growth and expansion of its financial services business. Paytm anticipates that the adoption of artificial intelligence (AI) in its operations will further enhance its financial services, marketing, and customer relations. The company is leveraging AI in various areas, including product development, creating operating efficiencies, and enhancing payment monetization. Paytm expects to capitalize on monetization opportunities through merchant subscriptions, MDR on payments, government incentives, merchant lending, and marketing services.

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