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Paytm has got customers by way of cashbacks, not by rendering services: Aditya Puri

Veteran financier Aditya Puri on Tuesday brought up issues about Paytm’s business model, saying the recently listed financial services organization has acquired clients not by delivering services but rather via cashback.

Puri, who led HDFC Bank from beginning and made it into the biggest in the private area space when he resigned in 2020, further scrutinized Paytm’s model, pondering where are the profits if the the organization oversees such a great deal of payments.

The comments come in the midst of a precarious decrease in Paytm’s shares, which are currently trading 75% lower than the cost at which financial backers got them at the first sale of stock. This isn’t the first time that Puri first has opened up to the world about his concerns about the models of such organizations.

“Paytm… he makes payments, when did he make a profit,” Puri asked, speaking at an event organised by the IMC Chamber of Commerce at the University of Mumbai.

Puri said dissimilar to a bank, which books incomes for offering its services and reports benefit, Paytm has collected huge number of clients by offering cashback.

Pushing on the difficult work engaged with angles like cross-selling, Puri expressed long stretches of work needed to go in before HDFC Bank could increase its cross-selling capabilities in the auto loans section regardless of claiming the clients by goodness of offering them different services.

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