Paytm riches to rags story: Stocks plummet to Rs 616.5 per share

On December 12, 2023, the stock price of Paytm experienced a decline of -6.1%, closing at 656.55 per share. As of now, the stock is trading at 616.5 per share.

In the year 2000, Vijay Shekhar Sharma founded One97 Communications, the parent organization of Paytm, after securing a loan of 8,00,000 rupees ($9,000). Initially focusing on digital goods and services, the company evolved over the years. In 2010, with an initial investment of $2 million, Sharma introduced Paytm, an acronym for 'pay through mobile.' Initially centered around prepaid mobile and DTH recharge services, Paytm soon expanded its offerings and became a prominent player in the Indian digital payment landscape.

By 2014, Paytm Wallet had gained widespread popularity as one of India's leading digital wallets. The subsequent years witnessed Paytm's foray into e-commerce, facilitating online shopping and ticketing. The impetus for digital payments grew significantly in 2016 following the demonetization of 500- and 1000-rupee notes in India.

Notably, Paytm achieved a milestone in 2017 by becoming the first payment app in India to reach 100 million downloads. As of March 1, 2021, Paytm boasted 1.2 billion monthly transactions and over 150 million active users.

Diversifying its services, Paytm expanded into various domains, including ticketing for movies and flights, gold sales, insurance, bank deposits, and remittances. In 2021, Paytm made history by conducting India's largest Initial Public Offering (IPO), surpassing the record set by Coal India's IPO in 2010. Following the IPO, Paytm achieved a market capitalization milestone of Rs. 1.19 lakh crore ($14 billion) on the Bombay Stock Exchange (BSE), marking a significant moment in the company's journey. During the IPO event, founder Vijay Shekhar Sharma was reported to have expressed his emotions, breaking into tears at the BSE.

However, following its Initial Public Offering (IPO), Paytm witnessed a significant downturn, with its shares experiencing a staggering 75% decline in market value. This decline represents the most substantial single-year slide in share prices among major initial public offerings (IPOs) globally in the past decade. The once-prominent fintech major faced considerable challenges, reflecting a stark contrast to the optimism surrounding its IPO.