Paytm is investing over ₹100 Cr in global payment center at GIFT City

GANDHINAGAR : Paytm CEO Vijay Shekhar Sharma announced a significant investment of over ₹100 crore to establish a global payment development center at Gujarat International Finance Tec-City (GIFT City). The announcement was made at the “Infinity Forum 2.0”, marking a strategic move to bolster the company’s international payment services.

The initiative, backed by the International Financial Services Authority, is set to expand Paytm’s financial services reach on a global scale. Sharma highlighted that this investment aligns with the company’s vision to enhance its offerings and tap into the growing fintech sector. The formal investment pledge is expected to be unveiled at the upcoming “Vibrant Gujarat Global Summit 2024” event, scheduled from January 10-12, 2024.

The establishment of the development center in GIFT City is poised to leverage the city’s infrastructure and business-friendly policies, aiming to create a robust ecosystem for financial technology innovations. This move underscores Paytm’s commitment to contributing to India’s stature as a key player in the global financial services landscape.

InvestingPro Insights

As Paytm forges ahead with its ambitious expansion into global payment services, real-time data from InvestingPro offers valuable insights into the company’s financial health. With a market capitalization of 80.01 million USD, Paytm presents an interesting case for investors. Notably, the company’s revenue for the last twelve months as of Q3 2023 stands at 54.14 million USD, indicating a challenging period with a revenue decline of 10.78%. This contraction reflects some of the headwinds Paytm faces in a competitive and rapidly evolving fintech landscape.

InvestingPro Tips suggest that Paytm’s management has been proactive in its approach to shareholder value, engaging in aggressive share buybacks. This could signal confidence from the management in the company’s long-term prospects, despite recent performance metrics. Additionally, the stock’s RSI indicates it is in oversold territory, which might attract investors looking for potential undervalued opportunities.

The financial snapshot provided by InvestingPro also highlights a PEG ratio of 0.75 for the last twelve months as of Q3 2023, coupled with a price-to-book ratio of 1.69. These metrics may be of interest to investors seeking to gauge Paytm’s market valuation relative to its growth expectations and book value.

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Speaking on the sidelines of ‘Infinity Forum 2.0’ in Gandhinagar, Sharma said, “Big opportunities based on the fintech ecosystem are coming to GIFT City. Along with the GIFT’s plan for an accelerator programme a lot of other fintech innovations are happening around the world and we plan to materialise on these opportunities. GIFT is also building a tower on its own. Having a fintech training institute and research & development centre, this tower will open a lot of opportunities for the growth of the fintech industry in the state and in the country.”

“Gujarat has been a major contributor in the overall business of Paytm. The state holds around 15% of the total market share for Paytm and that makes us more confident about our future plans in GIFT City. Furthermore, one of the main reasons for Paytm to look forward to business development in GIFT City is because it will help us focus on trade and B2B segment in finances,” added Sharma.