OFF CAMPUS ASSIGNMENTS
Guidelines for Application Assignments:
Application assignments are given to encourage participants to relate their classroom
learning with their actual experience in work setting .
Participants are expected to bring in relevant concepts and theoretical frameworks in their
answers to the application assignments.
While participants may discuss their ideas with their peers and may refer to different
sources of information, they should ensure that their answers most definitely reflect their
own thinking & analysis.
Any other sources of data / information that have been quoted in your submissions must be
referenced.
All assignment submissions should be through Ekosh.
Plagiarism will be strictly penalized.
All assignments need to be uploaded in Ms-Excel only.
(Excel binary, zip files, Word documents etc strictly not allowed)
APPLICATION ASSIGNMENT 3: (10 Marks) (Refer to session 17 & 18) (To be submitted in Excel
only)
Fintech (Session 17 & 18)
CLO 3
Paytm is India's one of the biggest fintech startups founded in August 2010 by Vijay Shekhar Sharma.
The startup offers versatile instalments, e-wallet, and business stages. Even though it began as an
energizing stage in 2010, Paytm has changed its plan of action to become a commercial center and a
virtual bank model. It is likewise one of the pioneers of the cashback plan of action.
Paytm has changed itself into an Indian mammoth managing versatile instalments, banking
administrations, commercial center, Paytm gold, energize and charge instalments, Paytm wallet and
many other provisions which serve around 100 million enlisted clients.
The areas served by Paytm are India, Canada, and Japan, it is also accessible in 11 Indian dialects. It
offers online use-cases as versatile energizes, service charge instalments, travel, motion pictures, and
occasions appointments. In-store instalments at markets, leafy foods shops, cafés, stopping, tolls,
drug stores and instructive establishments can be accessed through the Paytm QR code. One 97
Communications, the parent company of Paytm, is all set to raise its capital target of over ₹16,600
crores ($2.2 billion) through an IPO that it had filed earlier in July 2021. Paytm is seeking to raise $25
billion to $30 billion valuation post this IPO.
According to the organization, more than 7 million traders crosswise over India utilize its QR code to
acknowledge instalments straightforwardly into their bank account. The organization uses
commercials and pays a special substance to produce income.
Business Model of Paytm
Paytm or "Payment Through Mobile" is India's biggest instalment, trade, and e-wallet undertaking. It
began in 2010 and is a brand of the parent organization One97 Communications, established by Vijay
Shekhar Sharma. It was propelled as an online portable energize site and proceeded to change its
plan of action to a virtual and commercial center bank model.
The organization stands today as one of India's biggest online portable administrations that
incorporates banking administrations, commercial centers, versatile instalments, charge instalments,
and energize. It has so far given administrations to more than 100 million clients.
Paytm's enhancement has built a solid reputation and has turned out to be praiseworthy for some in
the online instalment industry. One of its increasingly vital accomplishments is in its joint effort with
the Chinese web-based business Goliath, Alibaba for immense measures of subsidizing.
Aside from being a pioneer of the cashback plan of action, the organization has been commended for
its introduction as a new business able to build huge partnerships in a limited time period.
Clients of Paytm Business
Paytm's core focus is on serving its Indian client base, especially the cell phone clients. Numerous
Indian clients saw the computerized world as an opportunity to open a financial balance. Accessing
simple online instalments missed the mark, and clients wound up with only poor experience. Paytm
presented itself as a superior option to deal with such situations.
Paytm's Channel for Business
Paytm utilizes numerous channels to draw in clients. Aside from its very own site which drives clicks,
Paytm has shaped associations with numerous customers and seller destinations that support its
endeavour. Demonetization in India enabled the organization to succeed altogether and arrive at
new clients too. Disconnected advertising is likewise a piece of their client procurement process.
Structure of Costing
Paytm serves numerous clients which is the motivation behind why it is so cost-driven. The vast
majority of its costs are identified with its foundation and client obtaining. It's a typical cost-shared
by numerous organizations over the reality where client securing cost is significant.
he cash utilized in this procedure is higher than the income it makes in its underlying buys. Most of
its financial limit is to put resources into sloping up of its security and stay away from the danger of
misrepresentation, particularly when it needs to deal with more than 65 million clients in its
foundation. It incorporates a framework that empowers clients to avoid any tax evasion hazard.
Revenue Model of Paytm
The Paytm revenue models come in two structures. Paytm makes commissions from the client
exchanges through their utilization of its foundation. Escrow Accounts are the accounts from where it
creates their income. Inferable from the non-appearance of its hidden capital, it offers clients no
intrigue. Starting in 2018 Paytm has aggregated 3314.8 crore INR in income.
Paytm Wallet
Paytm wallet is one of Paytm's best benefits that structures a connection between the bank and the
retailers. This semi-shut wallet empowers you to take care of your tabs, pay for your tickets, or pay
anyone concerned. Paytm wallet separated from its profit, as approved by the RBI, has the advantage
of accepting enthusiasm for a purchaser store, much the same as some other Payment Gateways.
When you store a specific measure of cash in your Paytm wallet, it will at that point set aside that
cash in another bank from which it will win enthusiasm eventually.
It is the Paytm wallet's fundamental capacity. For instance, suppose you make an instalment of Rs.
1000 to a merchant and the vendor makes 10 exchanges to increase Rs. 10,000. If the instalment of
that sum is made through the Paytm wallet, the Paytm wallet will take a portion of about 1% of the
aggregate sum. So, the merchant will get around Rs. 9715.
Mobile Recharge Business
Since its origin in 2010, Paytm's underlying intention was to give online portable energizing
administrations. Its capacity to create income was constantly shortsighted. Paytm's administration
guidelines are as praiseworthy and proficient as those of other telecom specialist co-ops running
from Vodafone to Telecom.
The administrations are without shortcomings and give solace to their clients. As of now, Paytm
increases a commission of 2-3% per energize. It is because Paytm, attributable to its support to its
client to keep reviving through its foundation, has more grounded power in dealing than different
merchants. That is the reason the commission it obtains is so high. This commission from its revive
administration fills in as its income.
These administrations have supported the organization essentially in extending its base and thus,
developing exponentially. When the client is fulfilled by the administration or item, he makes an
arrival to a similar undertaking in this manner. This way Paytm does client maintenance and produces
more traffic. Paytm has used this methodology to further its potential benefit and keeps on reaping
positive results.
Paytm Digital GoldPaytm Digital Gold
Inferable from its organization with MMTC-PAMP, the outstanding gold purifier, Paytm has propelled
"Computerized Gold". This model enables clients to sell, purchase, or store gold in an advanced
stage. Presently, clients need to pay at a rate just to get their gold conveyed to their families.
Paytm is very much aware of how much gold is put as a resource in India and is completely arranged
to develop from this chance. The organization has made eminent arrangements to urge its clients to
get their own Gold Bank Accounts individually. This record separated from empowering clients to
purchase their gold will likewise furnish clients with simple access to other Paytm administrations.
Paytm Mall
In February 2017, Paytm propelled its Paytm Mall application which enables purchasers to shop from
1.4 lakh enrolled sellers. Paytm Mall is a B2C model enlivened by the model of China's biggest B2C
retail stage, TMall. For 1.4 lakh merchants enlisted, items need to go through Paytm-guaranteed
stockrooms and channels to guarantee buyer trust.
Paytm Mall has set up 17 satisfaction focuses crosswise over India and joined forces with 40+
messengers. Paytm Mall raised $200 million from Alibaba Cluster and SAIF Partners in March 2018. In
May 2018, it posted losses of roughly Rs 1,800 crore with an income of Rs 774 crore for money
related to the year 2018. Moreover, the piece of the pie in Paytm Mall dropped to 3% in 2018 from
5.6% in 2017.
Source: https://startuptalky.com/paytm-case-study/
Based on the case study mentioned above, if you are presented with an opportunity to commence
business as a startup Fintech company in India. What would be your considerations regarding the
following areas:
1. Business model of the Fintech start-up. – (2 marks)
2. Target clients– (2 marks)
3. Proposed Revenue model – (2 marks).
4. What could be the possible reason for the downfall of the valuation of the company which
was once considered as the bright startup of India and what do you think that could be faced by the
business in the coming years based on the current state of the Fintech industry (more specifically,
online retail payments industry) in the coming years and what are the possible measures that could
be taken to minimize the impact of the challenges? - – (4 marks)
