ENTREPRENEURSHIP
DEVELOPMENT
ASSIGNMENT-3
NAME-D.NEERAJA
ROLL NO.-1806260013
MBA 2ND SEM.
COMPANY NAME
ENTREPRENEUR NAME
VIJAY SHANKAR SHARMA
YEAR OF ESTABLISHMENT
AUGUST 2010
Paytm is an Indian e-commerce payment system and digital
wallet company, based out of NOIDA SEZ, India. Wikipedia
CEO: Renu Satti (23 May 2017–)
Founder: Vijay Shekhar Sharma
Founded: 2010
Revenue: 814 crores INR (US$120 million, 2017)
paytm means Pay Through Mobile. It is a website where you can
do online mobile recharges, bill payments, DTH recharges, data
card recharges, bus tickets booking etc. Its not like other websites
where you complete your transaction and ultimately grieve for not
getting your recharge done. Paytm is very trusted website and
even State Bank of India recommends it (you can observe it at
your local branch). Also Paytm is one of the preferred partners of
Google’s GOSF-2013 (Great Online Shopping Festival) in India. I
have personally tried this website for recharges and never had any
problem. Even if you face any problem you can email them and
assure a quick reply. If recharge is not done due to some technical
issues, your money is safe and will be refunded to you...
Punchline of the company
Paytm Success Story :
Two words that come to almost every Indian’s mind while
Shopping, Post demonetization, are “Paytm karo.” Paytm has
brought a paradigm shift in the retail industry by completely
transforming the payment methodology. Initially, this online wallet
cum e-commerce website was used to make payments for limited
utilities like mobile and DTH recharge and shopping bills. Over the
years, this portal has expanded its scope and has brought about
anything and everything under the ambit of its operations.
Customers now can recharge their metro card, pay bills for
utilities like electricity and water, transfer funds to other bank
accounts, book flight/train/bus tickets, make hotel reservations,
etc. Now the latest Paytm Succes Story is everexpanding with
the addition of e-retail and m-commerce stores.
This gives the option to small vendors to list their products on the
website and allows them to expand their customer base.
About
The prodigy of India’s leading ecommerce website
development company One97 communication, Paytm was
launched in August 2010 by Vijay Shekhar Sharma. Started as
an online mobile recharge and bill payment platform, Paytm now
enables its users to make almost every kind of transaction on a
click of a button. In just a span of 8 years, Paytm has over 250
million registered users and counting.
Major investors in Paytm include Alipay, Alibaba groups, SAIF
partners, Silicon Valley Bank, and Sapphire venture. Numerous
revenue sources of Paytm include interest from the Escrow
account maintained in a nationalized bank, advertisements on the
website, commission from utility bill payments and other
recharges, and commission on fund transfers from e-wallets to
bank accounts.
Revolution and Growth
Paytm is a Reserve Bank of India (RBI)-approved e-wallet, i.e.,
the user’s money is secured under the Escrow account with a
nationalized bank. The security feature and easy user interface
make Paytm the most favored digital payment platform in India.
Paytm uses Verisign-certified SSL (Secure Sockets Layer) 128-bit
encryption technology. This ensures that the online information of
the user, i.e., the password and other financial details, is safe,
thus providing greater protection to users.
This online payment system is not only secure but also
robust.One of Paytm Success Story is it can handle around
5000 transactions per second. A high capacity of transactions
has been made possible by the implementation of a very simple
yet effective and safe payment method. Users can simply pay by
either scanning a QR code of the shop or by entering the mobile
number of the recipient. The Paytm wallet also has an option
where a user can either safely park his or her money in the
application and pay from the money in the wallet or pay directly
from the bank via the application. The combination of secure
transactions and high capacity has made Paytm one of the most
favored payment applications. More and more number of people
are now using Paytm to pay for their daily utilities and other
expenses.
The popularity of Paytm was boosted by the government’s
decision of demonetization. Demonetization forced people to
switch to either plastic money or a digital payment method. This
helped Paytm to further consolidate their position in the domain of
e-payment application. Recent surveys show that Paytm has
surpassed similar payment applications such as Mobikwik,
Freecharge, and other ecommerce app developers in terms of
both the number of users and the revenue generated.
One of the unique features of Paytm Success Story is that it is
not only popular in cities but also equally popular in small towns
and villages. Slowly and steadily it is becoming the favored mode
of payment among masses.
Expansion Plans
Last year Paytm’s market share among the e-payment companies
was 26%. Paytm is now planning to explore new avenues. By
2020, Paytm plans to tap the loan market and disburse small
loans to 500 million people.
The Paytm Payment Bank was launched in May 2017. A 5-
member board committee has been formed to expand the
physical presence of the Payment Banks.
Paytm is also planning to give WhatsApp a run for their money by
launching a chat app with more sophisticated features. Paytm
acquired Shifu and Near.in to improve and strengthen its offline
and online platform and enhance customer experience.
Success and Awards
Paytm is enjoying unprecedented success; it has won accolades
across the globe for work in the field of digital payment and e-
commerce developers. Here is a list of awards and recognition
bagged by Paytm in 2017:
1. The Diamond SABRE Award in Company of the Year at
SABRE Awards 2017
2. The Diamond SABRE Award in Superior Achievement In
Reputation Management at SABRE Awards 2017
3. The Gold SABRE Award in Financial Professional Services at
SABRE Awards 2017
4. Vijay Shekhar Sharma was recognized among the 50 Most
Influential Young Indians by GQ
5. Vijay Shekhar Sharma won at Entrepreneur India Awards 2017
6. Vijay Shekhar Sharma was listed in the 2017 Time 100 List of
Most Influential People in the World
7. Vijay Shekhar Sharma was recognized as the Entrepreneur of
the Year at The Entrepreneur’s Moneytech Awards 2017
8. Vijay Shekhar Sharma was announced Data Quest IT Person
of the Year
9. Vijay Shekhar Sharma won the Forbes Top 40 Under 40 Award
10. The Best Digital Wallet award at the 11th IAMAI India Digital
Summit
11. The Best Consumer Mobile Service award at the 11th IAMAI
India Digital Summit
Paytm is determined to improve their products and services and
enhance customer experience. Their dedicated team tirelessly
works to improve each feature no matter how small it may be. The
Paytm team always endeavors to add small and incremental yet
effective features that have ensured that it stays as the preferred
digital payment platform among users. Paytm has proved to be a
paragon in the field of ecommerce website developers and its
meteoric rise in popularity has inspired others to follow suit.
Turnover of the company
One97 Communications, which is the parent entity of digital
paymentscompany Paytm, has reported a net revenue of Rs
813.8 crore for the financial year 2016-17 and the company's net
worth stood at Rs 2,376.6 crore, according to a data accessed
from business information platform Tofler.
Pay did not close the net profit or loss figures for the year.
Vijay shekhar Sharma, he took home a gross salary of rs 3.4crore
for last year.
Beside the digital wallet offering, paytm has also started a paytm
bank under a licence from the RBI.
The company has appointed ex-ICICI bank executive Sudhanshu
jain as its chief financial officer for the payments bank.
Competitiors of paytm
Vijay Shekhar Sharma
Founder & CEO
82/100
4,959
$2.3B
$120M
CEO
--
220
$181.6M
$5M
2
Bipin Preet Singh
Founder & CEO
69/100
350
$165.2M
$17M
3
Sharat Jain
President
56/100
45
--
$10.7M
4
Ankur Saxena
CEO
65/100
500
$11.5M
$6.5M
5
CEO
--
394
--
$18.7M
6
Praveen Dhabhai
CEO
80/100
299
--
$3M
Sridhar Gundaiah
Founder & CEO
68/100
375
$16M
$40M
9
Dan Schulman
President & CEO
69/100
21,800
$260.2M
$15.5B
Below are the 4 main Paytm competitors :
1. Freecharge
2. Mobikwik
3. Airtel Money
4. JioMoney
The list of competitors
Freecharge : FreeCharge
1. Mobikwik : Online Mobile & DTH Recharge, Bill Payments,
Bus Tickets | MobiKwik.com
2. Airtel Money : Mobile App to Send Money, Recharge & Pay
Bills
3. Vodafone M-Pesa : Vodafone mPesa - Mpesa Home Page
4. Chillr : Instant Money Transfer
5. PhonePe : https://www.phonepe.com
6. SBI Buddy : https://www.sbi.co.in/buddy/
7. Pockets : Pockets - Bank Wallet - Digital Wallet App - ICICI
Bank
Future of the company
Financial services are the next big thing for mobile
payments company Paytm, which plans to invest about
Rs 5,000 crore in its core business this year, as per
media reports.
The company is also aiming to double the number of
quarterly transactions from 1 billion per quarter earlier
this year to 2 billion per quarter by end of the year.
In financial services, it aims to bring new products to the
market. Founder Vijay Shekhar Sharma said that
while there was an initial impact of RBI’s KYC
requirement with 10-15% fall in transactions in early
March, the company recovered the numbers in March and
grew again in April.
The company intends to invest more money in
financial services this year as customer lifecycle is
getting to the next level of maturity. It’s a logical
extension for them as they had worked on commerce last
year like travel and ticketing, where they are only second
in the list to the market toppers.
The company would work towards increasing the market
size in any category that they have ventured into and not
take away market share, as we have shown in payments.
Sharma opined that it will take time to build final
products since it is a regulated environment where
licenses will be key.
Paytm in the lending business
The company has partnered with ICICI Bank to
launch post-paid services and will partner with a few
others as well. Consumers get a pay-later facility. The
most critical thing in this sector is how to collect back the
money back as giving loans is easy. This is the reason
they have decided to go slow and work with the banks.
On being asked if this move of partnering with banks
would yield money, Sharma clarified,
“WE BELIEVE IF A PRODUCT GETS TRACTION, WE WILL
MAKE MONEY FROM IT. INTERNET BUSINESSES ARE BUILT
ON THE CORE PHILOSOPHY THAT IF YOU GET TRACTION —
THE LARGER NUMBER OF CUSTOMERS — REVENUE IS
INEVITABLY GOING TO BE MADE.”
He explained that if they work with banks and have them
disburse large amounts of capital, they will make money
and share it for sure.
