Paytm Shares Plunge For 9th Straight Session: What's Wrong Now?

One 97 Communications Ltd., the parent company of Paytm, saw its shares plunge for the ninth consecutive session, falling 5% to a low of ₹334.15 on Tuesday.

What Happened: This decline followed a continuous drop in Paytm’s Unified Payments Interface (UPI) transactions for the third month, as per data revealed by the National Payments Corporation of India (NPCI). In April, Paytm processed 111.7 crore transactions, marking a 9% decrease from the 123 crore transactions in March.

As a result, Paytm’s market share in the UPI ecosystem has contracted. The company captured 8.4% of the market in April, down from 10.8% in February and 9.13% in March. Despite the decline, Paytm maintained its position as the third largest player in the ecosystem, significantly larger than its closest competitors.

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For example, CRED, which ranks fourth in the UPI transaction charts, processed only 13.84 crore transactions in April, considerably fewer than Paytm’s 111.7 crore transactions. This indicates that CRED’s transaction volume is at least eight times smaller than Paytm’s.

The week began poorly for Paytm as the company also announced the resignation of Bhavesh Gupta, the Chief Operating Officer and President, to the exchanges. This news further influenced the stock’s performance, underscoring a challenging period for the fintech major.

Price Action: Paytm’s share price was locked in the 5% lower circuit at ₹334.15 on Tuesday.

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