Why did Paytm crash on debut?

ET Online Nov 20, 2021

Why the crash?

Why did Paytm tank while the Zomato and Nykaa listings went bumper? Image Source: Reuters

For one, Paytm is not the market leader in its own space. The other two are. Image Source: Reuters

Investors and analysts question the company's lack of profits and lofty valuations. Image Source: AFP

A Macquarie Research report says Paytm's business model lacks focus and direction. Image Source: Reuters

Report also says achieving scale with profitability will be a big challenge for the company. Image Source: Getty Images

Paytm has its hands full with multiple business verticals with no visibility on profitability. Image Source: BCCL

Competitors like Amazon, Flipkart, Google and others are offering almost the same services. Image Source: Getty Images

Google Pay and PhonePe are the dominant ones with 40% of the market. Paytm is now in 3rd place. Image Source: Getty Images

Paytm is a leader in wallets, but that's becoming inconsequential with the rise in UPI payments. Image Source: Getty Images

The company's free cash flow (FCF) position will not turn positive until financial year 2030. Image Source: Reuters

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