Sign up for the Daily Newsletter, sent exclusively to our Premium subscribers. We break down the big and messy topics of Asia’s tech and startup community. Get the newsletter in your inbox everyday with a Premium subscription.
Hello readers,
The ability to pay for things via mobile phones is sometimes highly underrated. It’s become second nature to us, but looking closely, it enables us to do so many things. For example, when pandemic lockdown measures forced my Japanese lessons to move online, I could easily shift to paying my fees via PayNow. It’s a little hard to imagine life without mobile payments now, to be honest.
One of the region’s leaders in this space (among many other fintech solutions) is on the verge of the biggest stock market debut in India. Today’s premium article dives into Paytm’s financials to find out what’s in store for the digital payments firm.
Today, we look at:
- The numbers that could spell success for Paytm’s IPO
- The Indonesian social commerce firm that just bagged US$30 million in its series B round
- Other newsy highlights, such as China’s move to secure its status as a manufacturing force and a fintech firm’s record series A funding round
PREMIUM SUMMARY
Exploring Paytm’s financials
In this episode of “A Writer Praises a Startup’s Name,” I’m giving credit to Paytm. Did you know that its name is short for “pay through mobile” and is also a play on the acronym ATM? I’m sure that’s a big reason the company is looking at a massive upcoming initial public offering (IPO).
- That’s a large number: The company’s IPO is estimated to be worth US$2.2 billion, and it could well be India’s largest listing to date.
- Revenue U-turn: Paytm’s net revenue fell nearly 10% in the financial year ended (FYE) March 2021. The company seems to be on a downward trajectory, as it recorded a roughly 1% decrease a year earlier. However, after lockdown restrictions eased, the firm’s gross merchandise value (GMV) rebounded. In fact, in the first quarter of FYE 2022 (April to June 2021), the company recorded one of the highest GMVs since its inception.
- Net profit? Not yet: Even though its operating losses have narrowed, the company is far from profitable. Paytm expects to continue to incur net losses for the “foreseeable future.” The company also anticipates operating expenses to increase when it hires more people and expands its operations and infrastructure in India and overseas.
Read more: Paytm IPO: 8 key points about India’s largest stock market debut
STARTUP SPOTLIGHT
Indonesian social commerce firm gets a US$30 million boost
A year after Evermos was founded, it raised a US$8.2 million series A round, which was led by Singapore-based VC firm Jungle Ventures. At that time, the social commerce firm had just 20,000 “paid resellers” on its platform. That number has since grown 5x to 100,000 active resellers.
Singapore’s world class startup ecosystem
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
