"India's Paypal" Paytm posts first quarterly profit, but revenue slips www.deekpay.com

## India's 'Paypal' Paytm makes its first profit, but revenue falls sharply! Paytm, India's "Paypal", recently released its financial results for the quarter ending September, showing a net profit of 9.3 billion rupees, or about 787 million yuan, making it the first time the company has made a quarterly profit. This is the first time the company has made a quarterly profit. This is mainly due to a one-time gain of Rs13.5bn from the sale of its activities business. However, despite the profit, Paytm's revenue for the quarter fell by 34% to Rs16.6bn. The news caused its shares to fall by 5.81 TP3T at one point, though they recovered in subsequent morning trade. Paytm is struggling to turn things around after stringent measures by the regulator led to a plunge in its share price and raised questions about its long-term prospects. Paytm faces stiff competition in the digital payments market from big tech companies like Google. The company is taking aggressive steps to retain users and is looking to expand in new business areas such as lending. Earlier this year, India's regulator ordered the closure of almost all of Paytm's bank branches, warning of a prolonged period of unregulated data flows with large fintech companies. The decision severely disrupted Paytm's payment processing and overall business, prompting founder Vijay Shekhar Sharma to forge closer ties with other Indian banks. Currently, the company is still awaiting approval from the RBI and relevant payment institutions for stable business operations. Paytm's shares have gradually recovered most of the ground lost since February this year, when they plunged more than 50% on regulatory restrictions. It's important to note that Paytm's profitability this time around was largely due to a one-time gain on the sale of its events business. This means that Paytm will need to make breakthroughs in other areas of its business if it wants to sustain its profitability. Going forward, Paytm will face multiple challenges from regulators, competitors and its own business development. Let's wait and see if it can finally become India's "Alipay".