Paytm Shifts Focus: No Plans for NBFC Licence Amid Growing Market Share
Paytm, operated by One97 Communications, has decided not to pursue a Non-Banking Financial Company licence as it focuses on leveraging its existing market share and partnerships. With significant growth in payments and revenue, Paytm aims for strong collaborations with lending partners, following recent strategic adjustments.
In a strategic pivot, One97 Communications, the operator of Paytm, has announced it will not seek a Non-Banking Financial Company (NBFC) licence. During a recent earnings call, Paytm President and Group CFO Madhur Deora highlighted the company's strategy of forming strong partnerships with blue-chip lenders, rather than applying for an NBFC licence.
Deora noted that Paytm plans to focus on distribution, technology, and collections while its lending partners manage capital, risk, and cyclicality. With an expanding market and growing market share, Paytm views the short to medium-term opportunity as significant, reinforcing its preference for a collaborative business model.
This announcement follows the Reserve Bank of India's decision to revoke Paytm Payments Bank's licence due to non-compliance. Despite this setback, Paytm reported a notable financial turnaround for the fourth quarter and fiscal year, further consolidating its market position without direct exposure to Paytm Payments Bank.
(With inputs from agencies.)
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