The continued doubts over Paytm ownership

The continued doubts over Paytm ownership

The continued doubts over Paytm ownership
March 06
14:08 2018

… the conclusion ?

The stake holders in Paytm’s parent One97 Communications are Alibaba Group, Ant Financial, Saif partners, Saffire Ventures and MediaTek and of course Mr. Vijay Shekhar Sharma who is the founder.

During Feb/March last the Reliance Capital sold its stake of $ 41 Million to Alibaba Group Holding Limited which is a Chinese multinational e-commerce, retail, Internet AI and technology conglomerate.

Reliance Capital, SVB (Saama Capital, a Silicon valley based company having its business roots in China) and SAP Ventures sold their share to Alibaba Group Holding Ltd., Thus the Alibaba Group along with its affiliate group Ant Financial (formerly known as Alipay) of the Chinese have now stake holder ship of anywhere between #180 Million to $200 Million. The Alibaba group had slowly increased their initial investment from 36.31% to 42% and again to 50%.

The Paytm has $ 4 billion investment from SAIF Partners with a team of investment professionals located in Hong Kong and China (Beijing, Shanghai, Shenzhen, Hangzhou, Changzhou, Xiamen and Hefei). SAIF Partners is a stage and sector agnostic private equity firm in Asia. SAIF China has offices in Beijing, Shanghai, Xiamen, Changzhou, Hefei, Shenzhen, and Hangzhou. Paytm, founded by Mr. Vijay Sekhar Sharma, is now valued around $ 5 Billion i.e., around Rs.35, 000 Crores in the Indian Market.

Saffire Ventures a Silicon Valley-based venture capital company that primarily invests in growth-stage enterprise technology companies globally also has its stake in Paytm but the figures are unknown. Paytm has a huge investment of $ 60 Million from MediaTek Inc., which is a Taiwanese fables semiconductor company that provides system-on-chip products for wireless communications, HDTV, DVD and Blu-ray. After the pulling out of investment by Reliance Capital, Paytm has spread its wings India but now all the stake holders’ roots are mostly from China.

Mr. Masayoshi Son, Chairman, Softbank, Japanese internet and telecom conglomerate purchased its share from SAIF Partners and founder CEO Shekhar Sharma, and staked its partnership of 20% in Paytm Payments bank, where One97 Communications owns 49%. On a turn-around surprise the Softbank is best known in global internet circles for its near 28% stake in Alibaba worth about $90 billion, the two founders Son and Alibaba’s JackMa are believed to share a close rapport. Due to entry of Softbank in Paytm the funding of Alibaba in Paytm came down from 62% to 40%.

All the stakes and deals of Paytm are kept strictly confidential and the share transactions and one to one deals are very clumsy while both the Company as well as investors are silent over the deals.

Paytm showed a cumulative loss of Rs.931 Crores as on March, 2017 at the same time Reliance has earned 27 fold returns on its investment. How is that even possible?

People feel that the Paytm (Semi Open Wallet) is a popular e-Wallet now in India. But safety comes first – and it is not advisable to have an e-Wallet with such close business relationship with China.

As on date the Indian Wallet Market is flooded with lots of apps and the Number of Installs are increasing day by day. Today some of the top 10 mobile wallet companies are Paytm, Mobikwik, ICICI Pockets, Memoe, PayUMoney, Citrus, State Bank Buddy, Citi MasterPass, HDFC Chillr and LIMe from Axis Bank.

Mobile Wallets are uprising in markets where payments are made at ease. A mobile wallet, in simple terms, is a virtual mobile-based wallet where one can store cash for making mobile, online or offline payments. We all feel easy of doing daily core business with mobile wallets. There are certain things to look out for when you are checking the security perspective of any gateway. Mobile wallet is a new concept in India that has been surpassing credit card usage and is slowly beginning to replace the traditional payment methods.

There are various types of mobile wallets in India, such as open, semi-open, semi-closed and closed – depending on the type of usage and payments that can be made. Wallets are growing rapidly as they help in increasing The Speed Of Transaction, Especially For Ecommerce Companies and all Ecommerce Marketplaces have integrations with such mobile wallets too.

Incidents have happened where someone sitting next to you can take away your wallet money, if you do not keep your phone locked or if your settings say ‘view my messages even in locked condition’. The above situation basically exposes your OTP which is needed most of the times for login. Always keep your phones/ laptops locked.

Use app password or applock, they will secure your phone. Set a secure pin, password, pattern or fingerprint as a means to ensure money stored in your wallet remains safe even if the owner’s phone is lost or misplaced.

It’s always better to deal with pure Indian wallet, but with open as well as Semi-closed e-Wallets, there is extreme convenience in operational features.

Nothing is secure online; it might get stolen any time and even the Paytm people cannot guarantee. Our Government is leading us towards digital payments, but in case of any dispute will the Government pay us any penalty?


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  1. Oorja
    Oorja March 07, 11:33


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