The Mukesh Bansal-Tata deal, Paytm’s IPO gambit, NPCI’s bill payments bet, & more
News of Paytm’s IPO plans took many by surprise, necessitating a deeper look into its financials. The company needs to be able to monetise its large user base, and for that it needs to get them to use its financial services businesses, the ones that actually make money.
Another big development we wrote on was Tata Digital’s investment in Mukesh Bansal’s CureFit as it builds a super app.
Here’s a roundup of news and analysis last week from The CapTable.
News of Paytm planning India’s biggest IPO has everyone questioning if the company is ready for such a huge leap? Paytm has managed to rein in its burn but its annual reports reveal mostly flat revenue growth for the last three years. How fast it can grow its new financial services businesses will determine its future.
Tata Digital’s $75 million investment in CureFit for a minority stake is primarily about recruiting Mukesh Bansal, also the founder of Myntra and former head of commerce at Flipkart. Tata Group, one of India’s
oldest and largest conglomerates, is banking on the internet industry veteran as it looks to build a digital empire rivaling Mukesh Ambani’s Reliance Jio.
NPCI, structured as a non-profit owned by banks, recently hived off Bharat Bill Payments as a profit-making body, a show of confidence that could unleash massive growth opportunities for the settlement engine, including by attracting private capital. BBPS now needs to fire on all cylinders to take on global tech giants and India’s largest conglomerates entering the space.
[Crisp and incisive analysis on the developments that matter]
If balance sheet stress and repayment pressures due to COVID were not enough, fintech lenders are now grappling with the fallout of the crackdown on shady Chinese loan apps. Law enforcement agencies are freezing the bank accounts of even regulated fintech lenders that have no connection with China.
Leading fashion brands are upgrading their supply chain processes to merge their online and offline retail channels, an omnichannel strategy marketplaces such as Amazon and Flipkart are also embracing. This isn’t an easy switch but has become a necessary one as pandemic lockdowns hurt consumer footfall and shoppers cut discretionary spending.