Paytm’s stock falls by 11% after a Macquarie report reveals RIL’s plans in the fintech sector
- ByStartupStory | November 24, 2022
Paytm’s stock recorded a new low of 11% on Tuesday after a report from Macquarie revealed a probable risk for the Noida-based fintech startup. According to the report, Paytm’s business endeavors might suffer a setback from Reliance Industries Ltd’s Jio Financial Services. As soon as the report became public shares of One97 Communications, the parent of Paytm, fell down to ₹475.55 on the National Stock Exchange. Among all the fintech companies in India Paytm could be “most at risk.” Last month it was revealed that RIL said that they will separate their financial services business and go for a listing on the stock market.
The new financial services corporation will be named Jio Financial Services Ltd. According to senior RIL officials, this will be done to gain footing in the new age of financial services for retail and small-business customers.
The Macquarie report says that RIL is a huge corporation and has access to huge amounts of data, gathered from a non-financial relationship which will allow Jio Financial Services to stand out from the other companies in the fintech sector. The easy access to large amounts of data will help them to process and analyze the data in real time. This will give them an upper hand where they will be able to provide financial services similar to larger corporations such as Alibaba, Amazon, Apple, Facebook, and Google. The Macquarie report further said, “RIL can significantly disrupt the payments business and be a real threat to fintech business models.” The inception of Jio Financial services is led by banking veteran K V Kamath.
Follow Startup Story
Related Posts
