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Paytm success story Vijay Shekar


There were times where people were struggling to get their money from their banks. You have experience in standing atm queue to withdraw your money. It was a horrible experience that we had gone through.

Bank came up with various methods to tackle this situation. But could not do anything effectively.

Bank launched online transactions but users fed up with the system. Filling username and password was so terrifying. Most of the time the transaction would fail. The experience was worst at that time.

To tackle and give the easiest solution to the users Paytm came into existence.

Paytm is a fintech company. Users can now easily transfer money online even without having a bank account.

It allows users to pay bills like electricity bills, water bills, gas bills, and many more.


Now you can easily book bus, train, bus tickets in this app.

Paytm was started in August 2010, by Vijay Shekhar Sharma. Paytm net worth is US $ 16 billion(2021). One of the highest-valued startup in India.

Its headquarter is in Noida, Uttar Pradesh. Its present CEO is Varun Sridhar(2021).

It crossed 100 million downloads in 2017. Nearly it has 20 million merchants on its platform.

Through Paytm users transacted over 1.2 billion in a month. There are almost 150 million active users in 2021.

In this blog , you will get in-depth explanation of Paytm success story

Also read : Paytm $16 billion IPO in 2021

Paytm startup

Paytm is a huge company and it was from the effort of its founder Vijay Shekhar Sharma. It was for his efforts, hard work, and passion.

Vijay Shekar Sharma early life

Image source – twitter

Vijay Shekar Sharma was born and bought from Aligarh.A small town in Uttarpradesh.Paytm founder was born on July 8, 1978.

Vijay Shekhar Sharm was very intelligent. Had a great passion for education.HIe studied in a Hindi medium school. Because of his great interest and dedication in studies. He completed school and college at the age of 15.

Vijay got selected to Delhi College of Engineering after he passed his entrance. From here Vijay’s struggle starts. 

He was from the Hindi medium. He could not able understand English.

Multiple times he couldn’t able to answer in English. This made him feel embarrassed in front of all.


Then Vijay Shekhar Sharma started putting in the effort. He started to read English newspapers, magazines. Dictionary was the only teacher for him. He started to converse with his friends in English to improve his fluency.

Paytm success story: Vijay shekar sharma

Vijay Shekhar Sharma started a site called in 1997. It was a search engine and then sold for $ 1 million.

After the success, he launched another platform called 197 communication in 2000. Its mobile application where it sent jokes, cricket scores, ring tones, and exam results.

Vijay Shekar Sharma observed a lot of inconveniences while transacting it money online.

He grabs the opportunity and launched Paytm in 2010 with a $ 2 million initial investment.

Vijay had a lot of financial circumstances in the beginning. There was a time where he had only 10 rupees in hand. He used to fill his belly with tea that too for twice a day.

As time passes company started to grow.Demonetization in 2016 geared up his platform. Everyone started to use the platform.

After the success of Paytm investors like Ratan Tata, Warren Buffet, Jack Ma invested in the company. He was the key person for the Paytm success story.

Now it is a multi-billion dollar company. Vijay Shekhar Sharma is the 64th richest person in India.

journey of paytm success story


There are several factors for Paytm success and made it iconic in the fintech space

  • Demonetization: India announced that 500 and 1000 rupes are not valid in 2016, November. During this time Paytm user base started to increase because it was the only company that allowed online transaction security. It also recorded 5000 crores of transactions in a month. 
  • Paytm Wallet: It allowed its users to transact and receive even without a bank account. It introduced a wallet system that made it available for all.
  • Ads: To attract users it made an ads campaign.With tag line called “Paytm Karo”.Ad campaigns were also been successful. It is a title sponsor for the Team India cricket team.
  • Paytm Mall: It introduced another business called Paytm mall. Where users call shop anything and everything. It has over 65 million products.
  • Paytm first games: It launched its fantasy platform in 2018 January with the Chinese company, AG tech. Its user base also increased on this platform. Paytm first games offer to users huge bonuses and a winning amount.
  • Payment banks: It launched its payment bank in 2017. It ensures every transaction safe and secure. where users can get a lot of benefits and discounts on purchases made on the platform. This made users trust this platform.

These all factors lead to Paytm success story.

Paytm business model


Paytm works on a commission basis. It has tie-ups with many companies. where if the user recharges his phone, pay electricity and water bill and purchase any item from Paytm. For all purchases, it charges a commission.

Paytm wallet is another income source. Million of its users have money in their wallets. Where the company considers it as a single entity and deposits on its partner account.Makes money from Fixed deposit.

Further it started its payment gateway, is another source it earns. On every transaction with a card, it charges a transaction fee.

It allows a third party to render its ads. From there also it earns a decent sum.

In this way, it has grown and revolutionized in the fintech space. Paytm helped a lot to users and merchants. Still working around and also trying to inter countries transactions.

Paytm IPO 

Paytm India’s largest payment app has made its IPO in 2021. But Paytm did not get the hour subscription from the investors. Paytm IPO made the company valuation at 1.39 lakh crores. 

The company raised 2.4 billion dollars or 18,300 crores. But the IPO did not go well. A lot of expectation was there about Paytm IPO. Before the Paytm IPO, zomato IPO, and Nykaa IPO was a success. 

On the other hand, Zomato had got 38 at oversubscription at the IPO. Even Nykaa IPO was also a very successful IPO in the Indian startup history. Because of the IPO Nykaa founder, Falguni Nayar the founder of Nykaa became a self-made billionaire. 

So, the IPO season for the Indian startup was lucrative. But the Paytm company did not get the same response. During the initial days of IPO Paytm falls down to 27%. 

Paytm IPO Failure Reasons 

The main reason for PayTM IPO failure is the lack of direction in the business model. The Paytm company did not have a specific business model where it bags profits and revenue. 

Even the company did not have any major growth in the last four years. Moreover, the company’s revenue what stagnant over the years. So many investors doubted before investing in the company. Even Paytm IPO valuation was also in not valid. 

Many people believe that Paytm’s IPO valuation was a trick. Even many were against the valuation. But now Paytm is in the worst conditions respective of the finance. 

Paytm Business failure

Paytm Mall a subsidiary business of Paytm crash down to 1 billion dollars of valuation. Earlier Paytm Mall’s valuation was over 5 billion dollars. But now Chinese investor Jack ma to pay exit. 

There were two Chinese companies that invested in Paytm. Alibaba company had 6.8% and the group had 27.9% stakes. 

Eventually, these companies sold their stakes for 5000 crores and exited the company. Paytm startup did not expect this kind of declination in finance. 

According to the report, Paytm payment bank is the only e subsidiary where it is profitable. In 2020 it bags over 30 crores profit. In the following year as well Paytm Bank made almost 40 crores of profit. 

Paytm company was making a lot of revenue. Because Paytm Fortune changed after the demonetization in 2016. Where Paytm is the startup operating on the online payment app. Alternatively, people pay through Paytm. 

As a result, the Paytm user base increased exponentially. Then there was a use competition in the online payment space. As of now, Phone Pe, Google Pay, and Bharat Pe giving tough competition to Paytm. 

Paytm startup is now facing huge competition. The successful startup, in the initial days but now Paytm is struggling with its finances. So it is very important that your business model should be stable, profitable, and sustainable. 

According to the latest news, Paytm founder Vijay Shekhar Sharma was appointed as CEO of the company for the next five years.

Paytm success story is an inspiration for all the budding entrepreneures.

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