Hi guys, Welcome to the Advanced Video Search Engine, and you are watching How Paytm made 2000 Crores in 3 months? Paytm Business Strategy & Revenue Model | Pavan Sathiraju. That video is uploaded by Pavan Sathiraju at 2023-02-09T07:54:45-08:00. We are promoting this video only for entertainment and educational purpose only. So, I hope you like & enjoy it. [xIY1I8vp8Yw]
| Name | How Paytm made 2000 Crores in 3 months? Paytm Business Strategy & Revenue Model | Pavan Sathiraju |
| Video Uploader | Video From Pavan Sathiraju |
| Upload Date | This Video Uploaded At 09-02-2023 15:54:45 |
| Video Discription | Please find the link to the Management Consulting Program that I personally lead at Blue Chapter! You receive personal feedback every week & work on an international live strategy project. This is not a mock project & our students proudly speak about this live experience in their interviews:) https://bluechapter.com/consulting-experience-program-gen/ If you are applying for fall 2023/2024 MBA programs, check out the global MBA fellowship program: https://bluechapter.com/global-mba-fellow/ **** Follow me here LinkediIn - https://www.linkedin.com/in/pavan-sathiraju/ Instagram - https://www.instagram.com/pavan.sathiraju **** One can do many free things using the Paytm mobile app such as money transfers, bill payments, pay merchants/kirana store owners, and mobile recharges without charge. Naturally one might wonder how Paytm makes money or what is the Paytm business model. In the last 3 months, Paytm made 2000 Crores in revenue. Where are they making this money from? In this video, I’ve covered how Paytm is making money from UPI users like you and me, merchants, advertisers, and other parties. Many people use Paytm to pay utility bills such as electricity, water, gas, etc. This is why you’ll find the reminders for utility bill payments on the main Paytm homepage. For payment of utility bills such as electricity Paytm charges a commission of 1-2% from the electricity providers. If we do a mobile recharge of ₹2,999 out of that ₹60 go to Paytm. Similarly for bill payment of ₹4000 another ₹80 go to Paytm. These small transactions don’t cost the UPI users any money but Paytm is making money through these commissions. These small amounts slowly turn into large numbers over time. The other way Paytm makes money is through Paytm Postpaid and Paytm personal loans. For processing a loan of ₹1,00,00 Paytm charges a processing fee of 4.25% + GST. This video will help you understand Paytm business strategy and Paytm earning model. On top of that Paytm also charges interest on the loans at the rate of 4.41% which roughly equates to 16.8% annual interest. The interest rate from loans of a similar amount from other banks such as ICICI, and HDFC is somewhere around 12%. One advantage of this is that the loan from Paytm will be sanctioned in about 2 minutes. This makes up for a huge chunk of their money. Coming to Paytm Postpaid, it is similar to a postpaid recharge in which a loan of up to ₹60,000 is sanctioned by Paytm which you have to pay back by the 7th of next month. There is no interest on this loan but there is a convenience fee of 1% also if one fails to pay back the loan on time then they have to pay a late fee of ₹750. Lastly, Paytm is making money through advertisements they show on the main page of their app. Paytm is hugely dependent on Advertisement for their revenues. If you go to any general/kirana store then you often hear a Paytm sound box noise telling the amount received. This soundbox is not free. There are 60 Lakh Kirana Store merchants using this sound box service of Paytm. Each sound box rent is ₹125 per month. Because of this Paytm is making 75 crores every month through these sound boxes. And because of this the number of kirana store owners using sound boxes is also increasing daily. Apart from this Kirana store owners also pay a commission on the purchase amount. The percentage of the commission depends on multiple factors such as the exact mode of payment, etc. After this Paytm gives loans to these Kirana store owners but the unique feature of these loans is that because of the access to the transaction history of the merchant payments through Paytm, the Paytm team knows which merchant is making good money. Depending on this Paytm will only sanction loans to the merchants who are making good money. Every single day as the transactions happen, Paytm will keep cutting a certain amount of money from each transaction. Because of this, the number of merchants who don’t pay back loans is going to be very less. That’s why Paytm NPAs are also very low. Paytm also offers a digital Khatabook to the merchants which is also very convenient. From this entire Paytm episode, we can learn the importance of having multiple sources of income. It is super important for us and every other business to have multiple sources of income. Hope you found this video helpful, please let me know what other topics you’d like me to cover. About Me I publish meaningful and valuable content on this channel. My aim is to make business news more accessible and easy to grasp. If you find my videos informative and insightful then make sure to subscribe and leave a comment. I’ll see you in the next video ***** Chapters 0:00 - Intro 0:22 - Video Pointers 0:54 - Making money from UPI users 2:06 - Paytm Postpaid & Loans 5:25 - Advertisements 5:50 - Paytm Soundbox 6:53 - Transaction Fee 7:35 - Merchant Loans 8:47 - SAAS Khatabook 9:21 - Takeaways 10:35 - Outro xIY1I8vp8Yw |
| Category | Education |
| Tags | pavan sathiraju | pavan sathiraju insead | pavan sathiraju management consulting | blue chapter pavan sathiraju | how paytm earn money | how paytm makes money | paytm business case study | paytm business model | paytm business strategy | how paytm makes profit | paytm earning model |
