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Paytm sees no impact from the expiry of the lock-in, trends show that there is a lot of buying

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India’s largest fintech company paym saw its mandatory lock-in expiration end today, with 86 percent of its shares becoming free float.



Trends showed that the expiration of the lock-in had minimal or no impact on the company’s share price, which traded at Rs 637, down 0.2 percent at 10:30 am.

In fact, details on BSE show that more shares were bought than sold.

Paytm counts Warren Buffet, SoftBank, Elevation Capital and Alibaba as long-term investors, among others.

Top brokerage firms such as JP Morgan, Morgan Stanley, Goldman Sachs, ICICI SecuritiesDolat Analysis and Research Themes and CITI have extended their confidence in Paytm’s strong performance.

The company recently announced Q2 FY23 financials and posted annual revenue growth of 76 percent to Rs 1,914 crore.

Meanwhile, the company’s losses were reduced by 11 percent on a sequential basis. The company’s profit contribution increased by 224 percent year-on-year to Rs 843 crore.

Recently, founder and CEO Vijay Shekhar Sharma said in a shareholder letter, “We are now excited about the next year of our journey as we approach EBITDA profitability and free cash flow generation.”

Brokers such as JP Morgan and Goldman Sachs even expect Paytm to reach its break-even target before September 2023.

On Monday, the company announced it had disbursed 3.4 million loans in October, an annual growth rate of 161 percent.

The value of total loans disbursed in October grew to Rs 3,056 Cr (USD 407 million, 387 percent year-on-year growth).

Paytm’s leadership in offline payments was further strengthened as the total number of used merchant subscription devices increased to 5.1 million.

With the subscription-as-a-service model, strong device adoption drives higher payment volumes and subscription revenue while expanding the business loan distribution funnel.

For October, the total gross trade value of the merchant processed through Paytm was Rs 1.18 lakh crore (USD 14 billion), an annual growth rate of 42 percent.

Sharma went on to write in his letter that the payment revolution continues in India, with merchants and users enthusiastically adopting digital payment technology.

Government incentives for UPI payments and merchant adoption of its devices and subscription products, makes payments increasingly “monetizable and profitable” for the company.

Speaking about the company’s booming lending business, which is now running on an annualized basis at Rs 37,000 crore in the month of October, Sharma said, “At the same time, we are now scaling up the distribution of loans, which can bring financial inclusion to hundreds of millions of people in our country. ”

“Due to the huge demand for loans in our country, our low penetration rate and the composite nature of our credit trajectory, we are extremely optimistic about our lending outlook,” added Sharma.

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