Paytm partnership with Fullerton does little to the deep dive in its stock price

The stock is the biggest loser among the new-age tech unicorns having unreasonably high valuations and negative margins.

The stock is under constant selling pressure notwithstanding its announcement of the partnership with Fullerton India to expand digital lending to MSMEs and consumers with a special focus on smaller cities and towns.

The partnership is proposed for Paytm Postpaid (buy-now-pay-later) to millions of consumers on the Paytm platform while utilizing Fullerton’s deep risk assessment capabilities and scale. Fullerton India and Paytm will further expand their product offerings to include instant personal loans, which are end-to-end digitally originated and disbursed using Paytm’s technology and Fullerton’s pan India presence. 

Paytm is India’s leading digital payments and financial services company, which offers products and services to consumers and merchants. The much-hyped Paytm’s debut at the bourses was nothing short of a debacle with the share listing at a discount of 9 per cent to its issue price of Rs 2150. Since then the share has nearly lost 58 per cent and it continues to bear the brunt of the bear sentiment ruling the markets. Investors’ wealth has been wiped off by more than half of their investment in IPO.   

The stock is the biggest loser among the new-age tech unicorns having unreasonably high valuations and negative margins. 

The stock has dived to a record low of Rs 885.55 and is currently trading at Rs 890 with a loss of 7.30 per cent at 14.15 pm