Team NaSh

-Naman Arora
-Shantam Singh
 Vision and Mission
• To enhance digital excellence, Increase
earnings growth via more cross-selling
opportunities and wants to bring half a billion
Indians into the mainstream economy through
their financial service.
Problem Statement
• With the top two competitive service providers
like PhonePe and Google Pay having around
80% market share in the Financial Technology
E-commerce sector, Paytm aims to achieve
better consumer engagement and gain the lost
market share by providing enhanced quality
service.
• Despite being able to run many business
verticals, Paytm is losing its market share
especially when it comes to digital transactions
(UPI, Wallet). At the same time, it is not a
market leader in any of its operating areas.
 Business Model
Payment Services
• Payment Services are largest contributor,
together it adds up to 75% of revenue
which is Rs. 2109 crore. It has a total GMV
of Rs. 4 lakh crore.
• It has a market share of 40% in mobile
payments services.
• A market share of 65-70% in wallet
payment transactions.
• Offers services such as Paytm Wallet,
Food Wallet, Fastag, BNPL and EMI.
• For, merchants it provides payment
gateway, all-in-one QR codes and PoS
services.
Commerce and Cloud
Financial Services
Services
• Offers Paytm Payment Banks with a • Offers cloud services to enterprise,
total of 65 million accounts and deposits telecom companies and ticketing
worth Rs. 5800 crore. platforms.
• It is the second largest movie ticket
• Paytm Insurtech- A Insurance market
platform in India.
place which provides different insurance
• Earns Rs. 693 crore from sales.
services such as auto, life and health
• Generates revenue by charging
apart from this provides policy
management and claim services. Has a
merchants in ticketing business
services.
total 11.3 million insurers.
• Wealth Management Services- Provides
Gold, Mutual Funds and futures and
options trading options. The total assets
from this business is Rs. 5200 crores.
• It generates revenues by charging
transaction fees from institutions.
 SWOT ANALYSIS
Strength
• Market Presence and Deep Market Penetration because
of wide Range of Services
• A total of 337 million consumers of which 120 million are
annual transacting users with 50+ million strong active
consumer base.
• 22 million merchant on its platform.
• Low Technical Decline when Paytm acts as a remitter
bank.
(Paytm 0.07%,0.1%,0.07%) (SBI -0.96%,0.86%,4.43%)
HDFC –(0.3%,0.07%,0.19%) in (Oct, Nov, Dec 2021 resp.)
Opportunities
• Can Expand itself in Consumer lending and other
financial services. 
• High Growth in UPI transactions with Increase in number
of Banks live on UPI. (From Dec 2017-Dec 2021)-
Numbers for following years (35,67,129,207,282)
• Possible Growth in improving PAYTM payments bank by
including services such as SAVINGS, SALARY and
Current Accounts.
Weaknesses
• UPI accounts for 65% of Paytm’s GMV, which is expected
to increase to 85% by 2026. This directly affects Paytm’s
margin due to low take-rate.
• Multiple Business prevents it from being a market leader in
any of the market segment.
• Flaw in Business Model- Utilized 13,200 Cr. of 19,000 Cr.
equity capital to fund losses.
• These services such as Consumer Lending, Co-branded
Credit cards, Insurance Distribution, Wealth Management
and Mini-app platform failed to bring in revenues or profits.
Threats
• PhonePe a key competitor which has already entered the
insurance services is aiming to get into lending and asset
management business which would affect PAYTM’s
payment banks expansion plans.
• More entries by new payment interface apps, e.g.,
WhatsApp
• If any of the other players in the market go for public
issue, e.g., PhonePe, it would have a devastating effect
on the market share price and capitalisation.
 • To fend off competition while increasing your market share and profit sustainability can be one of
the most difficult task a business can do. 
• Paytm has been a major player in digital payments market for more than a decade now and has
always been an initiator and undertaker of new ventures and areas of operation where no one has
sought to look before.
• With the spirit to venture into the unknown and improve upon the existing areas of operation,

Possible Team Nash has suggested on the possible solutions which might improve Paytm profitability and
increase market share at the same time. 
• These are:-
Solutions 1. More Rural Penetration.
2. Hand-Check on Cashbacks/Marketing Expenditure.
Suggested 3. Move towards closing down of unprofitable business ventures to improve liquidity.
4. Potential tie-ups with Crypto Exchange platforms like CoinDCX/CoinSwitch Kuber.
5. The Increase in UPI transaction in terms of volume is significant and there is a potential upward
growth in the same, more banks have been registering themselves with UPI. This growth could
further be tapped.
6. Repositioning of wealth management services such as ETFs, Mutual Funds, Gold Investments etc.
7. Online travel services has seen a major growth in past couple of years. MakeMyTrip-31%,
GoIbibo-27.4%, IRCTC-22.9%, Cleartrip-9.6% and Yatra-7.3% are currently the top 5 players
in the segment. In terms of Rail Tickets IRCTC is the market leader followed by Paytm.
Similar penetration in other modes of travel services could be made and Paytm has already
acquire VIA.com, thus it can take away market share of smaller players.
 Increased Rural Penetration
with Paytm Payments Bank
• As shown in the map, much of the rural market has been untapped by Paytm.
• This could be used in its advantage to engage more users in its platform.
• Since, Paytm has already received scheduled bank status in Dec 2021, this means it
can explore for more business growth.
• It was set to launch over 1,00,000 banking outlets across India by the end of 2018.
However, the bank's branches are yet to touch double digits. This could now be
brought into action since it has already received a nod from RBI. Heat Map of Paytm ATMs in India
• Scheduled bank status means Paytm now can participate in government run
schemes, this means that if Paytm positions itself in a concise manner it might be
able to generate new business and be able to bring a greater number of Indians from
Rural India to mainstream financial economy.
• Conventional Banking services could be replaced in Rural Services by introducing
Paytm Banking and Opening Saving Account.
• Salary Accounts as well is another segment wherein it can try to introduce itself.
( Paytm can do the same by further tie-ups and replicate what it did with UBER back
in 2018).
• It could earn a great deal of margins through engagement in lending operation
by introducing lucrative deals on deposits and loans like a functioning bank with
medium branches spread throughout the western-middle rural India.
 Crypto Tie-Ups 
Wallets have been the most popular segment  after UPIs
for digital payment transfers on several platforms. One
such platforms is the crypto-currency platform.

As of now, Indian investors have poured over $1obillion in

the coin market and this has been roughly managed by
apps such as CoinSwitch or CoinDCX.
If Paytm has tie-ups with these companies that have further plans to
expand and project more investment into these industries, then it
will be the first digital payments company to have explored into this
untapped market with great potential.

With options such as tight secure wallet transactions and taking the
load off the heavy transactions from these apps, reducing traffic
could be a huge benefit for both these apps as well as Paytm.
 Growth in UPI transaction and market share
of different players
Growth In terms of Volume in UPI trans-
action
900,000.00
800,000.00
700,000.00
600,000.00
500,000.00
Value (in Cr.)

400,000.00
300,000.00
200,000.00
100,000.00
0.00
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Month

• Before the advent of UPI, Paytm was synonyms to digital transaction. Paytm offered services at
the time when digital banking and mobile transactions was still a growing industry. Paytm needs
to reposition itself and try to improve and get larger pie of the market share.
• For Google pay, SBI and HDFC acts as a transacting bank, these banks have a high Technical
Decline compared to Paytm. Thus, Paytm can act upon it and try to capture its market share.