Indian fintech giant Paytm saw its lock-in expiry as 86% of shares held by pre-IPO investors became free to trade. However, it seems that Paytm’s long-term major shareholders aren’t in a hurry to sell. Trends show that Paytm saw heavy buying instead of selling.
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Nykaa promoters are decreasing their shareholding while Paytm’s robust performance continues to impress investors. Investors like Warren Buffet, SoftBank have placed long-term bets on Paytm. Masayoshi Son recently said he is not hastening exit.
Meanwhile, Nykaa, which effectively saw its lock-in expiry come into effect now, saw heavy sell-off as shares slid. This is interesting because currently Nykaa’s promoters hold over 50% of its shares. This could mean that Nykaa’s promoters are offloading their shares to book profits.
In the case of Paytm, its pre-IPO investors like Warren Buffet, SoftBank, Elevation Capital, Alibaba are long-term investors. Moreover, Paytm has impressed its investors with continued strong performance. The company recently announced Q2 FY23 financials had posted a 76% y-o-y growth in revenue to Rs.1,914 crore. Meanwhile, the company’s losses reduced by 11% on a sequential basis. The company’s contribution profit surged 224% y-o-y to Rs 843 crore.
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SoftBank’s Masayoshi Son, as per media articles, won’t hasten exit from its investments like Paytm, PB Fintech, Delhivery.
Recently in a shareholder letter, company’s founder and CEO Vijay Shekhar Sharma said, “We are now excited about the next year of our journey, as we get close to EBITDA profitability and free cash flow generation.”
In fact, brokerages like JP Morgan, Goldman Sachs expect Paytm to achieve its breakeven target ahead of Sept 23.
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On Monday, the company announced that it had disbursed 3.4 million loans in October, registering a y-o-y growth of 161%. The value of total loans disbursed in October grew to Rs.3,056 Cr ($407 million, y-o-y growth of 387%). Paytm’s leadership in offline payments strengthened further with its total merchant subscription devices deployed increasing to 5.1 million. For October, the total merchant GMV processed through Paytm aggregated to Rs 1.18 Lac Cr ($14 billion), marking a y-o-y growth of 42%.
