Paytm's top executives spent 90 minutes on a call with investors and analysts on Saturday as they raised questions on monetization.
After a turbulent debut for the company behind India’s largest initial public offering, Paytm’s top executives spent 90 minutes on a call with investors and analysts on Saturday as they dissected its business model and raised questions on monetization.
Whether officials have done enough to ease doubts on revenue streams and profitability prospects remains to be seen when markets reopen. One97 Communications, the parent of the digital payments giant, ended last week 17% below its offer price of 2,150 rupees ($28.68), after falling to as low as 1,271 rupees at one point.
Over the weekend, One97 reported losses widened to 4.74 billion rupees in the July-to-September quarter from a year ago amid rising expenses. Revenue rose more than 60% in the same period, boosted by growth in financial, commerce and cloud services.
“Strong momentum in revenue growth will continue,” Chief Financial Officer Madhur Deora said on the call. Contribution margins jumped “with clear trends towards continued year-on-year improvements,” he said in the presentation that was later filed to stock exchanges.
Chief Executive Officer Vijay Shekhar Sharma highlighted the company’s ramp-up in the key segment of lending -- an important and fast-growing market in credit-starved India, where digital fintech such as Paytm are serving millions of consumers and merchants.
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