The shares of one of the leading payment aggregators in India in green after it proposes to make an investment of upto Rs. 100 Crores in the GIFT city of Gujarat for innovation and expansion activities as follows
At 11:26 a.m the shares of One 97 Communications Limited were trading at Rs. 686.70, up 0.15 percent from its previous day’s close price of Rs. 685.70 and its market capitalization is Rs. 43,596 Crores.
One 97 Communications Limited is considering an investment of upto Rs. 100 Crores in the Gujarat International Finance Tec-City (GIFT City), Gujarat India.
The proposed investment is to build an Artificial Intelligence-driven cross-border remittance and payments technology system, which will deliver cost-effective solutions at a global scale and Set up a development center to Drive world-class innovation and create hundreds of jobs.
As of FY23, it generated 62 percent (Rs. 4,930 Crores) of its revenue from Payment Services, 19 percent (Rs. 1,540 Crores) from Financial services and 19 percent (Rs. 1,520 Crores) from commerce & cloud services.
In addition to this, it recently announced that it is going to expand its credit distribution business and enhance its focus on higher ticket loans for consumers and merchants in partnership with banks and NBFCs, thereby reducing its focus on small ticket loans of less than Rs. 50,000.
Because of this, it received a backlash from the investors and the stock hit a 20 percent lower circuit on December 7, 2023, as 70 – 73 percent of Postpaid loans given by the company were under the Rs 50,000 mark and this decision can affect the company’s operations.
The company’s revenue from operations grew by 60.59 percent from Rs. 4,972.3 Crores in FY22 to Rs. 7,985.2 Crores in FY23, accompanied by decreasing losses of Rs. 2,392.9 Crores to Rs. 1,775.9 Crores.
One 97 Communications(Paytm) Limited is one of India’s leading payment solutions providers in India with a digital ecosystem offering consumers and merchants a wide range of services that involve comprehensive payment solutions, payment facilitator services, facilitation of consumer and merchant lending, wealth management, Insurance broking services, and many more.
Written by: Bharath K.S
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