On Tuesday, the market capitalization of One 97 Communications, the parent company of fintech platform Paytm, neared $2.5 billion as its shares continued to decline. Trading at Rs 334.15 on the Bombay Stock Exchange, the Noida-based company’s stock saw a 4.99% drop at market close. This follows a 5% decrease on Monday, triggering the lower circuit, in response to the resignation of Bhavesh Gupta, the COO and president, on Saturday.
During its IPO in 2021, Paytm was valued at nearly $20 billion, but its market capitalization dropped to $13 billion shortly after listing, falling below its $16 billion private market valuation. The decline in shares began in January following regulatory actions by the Reserve Bank of India against Paytm Payments Bank, leading to the resignation of MD and CEO Surinder Chawla.
Recent changes in Paytm’s leadership include Varun Sridhar, CEO of Paytm Money, being replaced by Rakesh Singh. Sridhar’s departure was reported on May 2. Paytm’s founder and CEO, Vijay Shekhar Sharma, emphasized a focus on payments and lending, with Sridhar tasked with expanding reach in mutual funds and wealth management, and Singh concentrating on technology-driven wealth options.
In March, the NPCI allowed One 97 Communications to operate as a third-party application provider on the Unified Payments Interface infrastructure, positioning it against competitors like Google Pay and PhonePe. Regulatory actions against Paytm Payments Bank have significantly impacted the company’s mobile wallet business, leading to a decline in transactions over the past three months due to restrictions on customer acquisition.