One97 Communications
One97 Communications Ltd is an Indian multinational technology company, headquartered in Noida.[1] It was founded in 2000 by Vijay Shekhar Sharma. Through its subsidiaries and businesses, the company offers digital payment and financial services to consumers and merchants in India.[2][3] It also provides mobile advertising, marketing and payments for merchants.[4]
| Company type | Public |
|---|---|
| Industry | Technology |
| Founded | 2000 in New Delhi, India |
| Founder | Vijay Shekhar Sharma |
| Headquarters | Noida, , India |
Area served | Worldwide |
Key people | Vijay Shekhar Sharma (CEO) |
| Products | Paytm Paytm Mall Paytm Payments Bank Paytm Money Paytm Insurance Paytm First Games Paytm Smart Retail Paytm Insider |
| Brands | Paytm |
| Website | one97 |
In 2021, the company became publicly listed after the largest ever initial public offering (IPO) in India's history.[5][6][7] It was listed on Indian stock exchanges on 8 November 2021.[8][9]
History edit
One97 Communications Limited was founded in 2000 by Vijay Shekhar Sharma in New Delhi. The company is headquartered in Noida, India.[10] It launched Paytm in 2009 as a digital payments platform to facilitate cashless payments.[11] It owns various businesses and subsidiaries – Paytm Payments Bank, Paytm Payments Gateway, Paytm Payout, Paytm Money, Paytm Insider, Paytm Insurance, Paytm Postpaid, Paytm for Business, Paytm Credit Cards, and Paytm First Games.[11][12]
Funding edit
In October 2011, One97 Communications received funding of $10 million from Sapphire Ventures.[13] In January 2015, Ant Financial Services Group picked 25% stake in the company.[14][15][16] In March 2015, Ratan Tata made a personal investment in One97 Communications's Paytm and joined as an adviser of the company.[14] It received funding of $60 million from MediaTek's investment funds Mountain Capital, which made the company's valuation at $4.8 billion in August 2016.[17]
In May 2017, the company raised $1.4 billion from Japan's SoftBank Group, which made its valuation jumped to over $8 billion.[18] Paytm raised $300 million from Warren Buffett’s Berkshire Hathaway in September 2018.[19][20][21] In November 2019, the company secured $1 billion in a Series G funding led by T Rowe Price and existing investors Ant Financial and SoftBank Vision Fund. Discovery Capital also participated in the round.[22] Paytm raised Rs 9,000 crore ($1.4 billion) from SoftBank.[23][24]
Acquisition edit
In December 2012, the company acquired MobiVite, a mobile marketing platform[25] followed by the acquisition of Plustx, a cross-messaging platform in August 2013.[26]
IPO edit
One97 Communications was scheduled to launch its IPO In November 2010. However, it shelved the listing plans last moment, citing volatile market conditions.[1][27] On 16 July 2021, the company filed draft prospectus for its IPO of up to ₹16,600 crore[28] and various news outlets reported it to be India's largest Initial public offering ever.[29][30] It is listed on National Stock Exchange of India and Bombay Stock Exchange since November 2021.[31]
The company's initial share sale aimed to raise ₹18,300 crore at a band of ₹2,080-2,150, valuing it at ₹1.39 trillion.[32] The company's IPO was subscribed 18% on the first day, having received bids for 8.742 million shares against the total issue size of 48.4 million shares. [33] Its IPO was subscribed 48% on the second day[34] and it was fully subscribed on the final day of the issue.[35][36] However, its shares fell 13% and 27% respectively on the days succeeding its listing[37] and has continued to slide sparking criticism on its valuation methodologies, inviting regulatory scrutiny.[38]
Financials edit
According to RedSeer, it has the largest payments platform in India with a gross merchant value of Rs 4,033 billion in the financial year 2021.[39] According to its annual 2021 report, One97's revenue from operations dropped 14% to Rs 2,802 crore for FY 2021. However, losses narrowed to Rs 1,701 crore during this year, compared to Rs 2,942 crore loss reported in the fiscal year 2020.[40]
One97 Communications reduced losses by 28% to Rs 2,833 crore in the FY 2019-20. Its overall expenses were reduced by 20% in 2019-20 to Rs 5,861 crore compared to Rs 7,254 crore in 2019-18. Its revenue also declined 1% to Rs 3,350 crore in FY20.[41]
Awards and recognition edit
In August 2009, One97 Communications was awarded the Emerging Company of The Year at the 10th Annual Voice&Data Award 2009 for its contribution to the VAS space.[42] In the same year, it was also awarded the Deloitte Technology Fast50 India award in 2009.[43] In December 2010, One97 Communications won the Best Digital Innovation category for its 'TalktoMe' product at IAMAI's Digital Awards by the Internet and Mobile Association of India.[44] It won Company of the Year at ET Now-IndiaMART Leaders of Tomorrow Awards 2010.[45] In May 2011, One97's product Talk2Me was awarded the Best Innovative VAS Product at the ET Telecom Awards by The Economic Times.[46] One97 Communications was ranked #493 in the Deloitte Technology Fast 500 Asia Pacific list in 2012.[47] The company was awarded the VCCircle Annual Awards 2013 for the best PE/VC-backed Media & Communication Company.[48]
In March 2014, One97 was announced as the Most Innovative Company of the Year 2014 at the Business Standard's Awards.[49] In July 2015, it won NDTV's Disruptive Digital Innovator Award.[50] The company was ranked #309 in the list of Fortune Next 500 company for the year 2017.[4]
See also edit
References edit
- ^ a b Kumar, John Satish (9 December 2010). "One97 Communications Defers IPO". The Wall Street Journal.
- ^ "One97 Communications Ltd". ibef.
- ^ "company history". Business Standard.
- ^ a b "The Next 500". Fortune India. 2017.
- ^ "Paytm files for India's largest IPO, eyes $25 bn-$30 bn valuation". Business Standard.
- ^ Nahar, Pawan. "Paytm hits fresh lifetime low, trades 75% below IPO price". The Economic Times. Retrieved 22 March 2022.
- ^ "Paytm shares listing on Nov 18". Economic Times.
- ^ "Paytm makes history; India's largest IPO bidding ends with 1.89x oversubscription". Financial Express.
- ^ "Unicorns with valuation over $1 billion rise in India". The Times of India. 13 July 2021.
- ^ Verma, Shrutika (2 December 2016). "Vijay Shekhar Sharma: The 'no cash' champion". Livemint.
- ^ a b Joseph, Lancelot (23 August 2021). "Flexing its technology muscle". Business India.
- ^ Rai, Saritha (18 November 2015). "One97's Paytm banks on the future of mobile wallets". Forbes India.
- ^ Abrar, Peerzada (11 October 2011). "SAP invests $10m in Delhi-based One97 Communications". The Times of India.
- ^ a b "Ratan Tata invests in Paytm, joins as adviser". Hindustan Times.
- ^ "Paytm raises $660 million". The Telegraph (India). 13 December 2019.
- ^ Srinivasan, Supraja; Ganguly, Payal (18 July 2017). "CCI approves Softbank's 20% stake buy in One97 Communications". The Economic Times.
- ^ Mishra, Digbijay (30 August 2016). "Mediatek invests $60m in Paytm at $4.8bn". The Times of India.
- ^ Chanchani, Madhav; Variyar, Mugdha (19 May 2017). "Paytm raises $1.4 billion from Softbank, valuation jumps to over $8 billion". The Economic Times.
- ^ "Paytm raises $660 million". Telegraph India.
- ^ Purnell, Newley; Friedman, Nicole (27 August 2018). "Buffett's Berkshire Hathaway Invests in India Mobile-Payments Firm". The Wall Street Journal.
- ^ "Berkshire Hathaway Invests in India's One97 Communications". Bloomberg News. 27 August 2018.
- ^ Shrivastava, Aditi (25 November 2019). "Paytm gets $1 billion topup in latest financing round". The Economic Times.
- ^ "Paytm raises $1.4 billion from Softbank, valuation jumps to over $8 billion". Economic Times.
- ^ "One97 Communications raises over $660 mn from investors including Alipay". Business Standard. 13 December 2019.
- ^ Abrar, Peerzada (18 December 2012). "One97 Communications acquires MobiVite to consolidate footing in mobile marketing space". The Economic Times.
- ^ Abrar, Peerzada (8 August 2013). "One97 acquires local language messaging startup Plustxt". The Economic Times.
- ^ Modak, Samie (16 July 2021). "One97 taps IPO market in new, bigger avatar 11 years after aborted attempt". Business Standard.
- ^ "One97 Communications files DRHP for Rs 16,600 crore issue". The Economic Times. 16 July 2021.
- ^ Modak, Samie (27 July 2021). "Paytm files for India's largest IPO, eyes $25 bn-$30 bn valuation". Business Standard.
- ^ Kaur, Malavika Makol (9 November 2021). "Paytm IPO, India's largest ever, seen as a 'high-risk' bet for investors". The Economic Times.
- ^ "Biggest IPO, biggest crash: Paytm tanks 27% on Day 1". The Economic Times. 19 November 2021.
- ^ Sultana, Nasrin (8 November 2021). "Paytm best bet to ride fintech, but valuations lofty". Livemint.
- ^ "Paytm parent's IPO sees muted demand on day 1". The Economic Times. 9 November 2021.
- ^ "Paytm IPO subscribed 48% at the end of day 2". Indian Express. 9 November 2021.
- ^ "Paytm IPO fully subscribed on final day of issue. GMP, other key details here". Livemint. 10 November 2021.
- ^ Gupta, Yashi (17 November 2021). "India's biggest public offer subscribed nearly 2 times". CNBC TV18.
- ^ "Paytm tumbles another 13% after first-day IPO flop - Times of India". The Times of India. Bloomberg. 22 November 2021. Retrieved 14 March 2022.
- ^ "After Paytm Flop Show, India Tightens IPO Valuation Scrutiny: Report". NDTV.com. Retrieved 14 March 2022.
- ^ Dugal, Ira (16 July 2021). "What Paytm's IPO Prospectus Tells Us About Its Business". BloombergQuint.
- ^ Mishra, Digbijay; Manikandan, Ashwin (5 June 2021). "IPO-bound Paytm's revenue drops 14% in FY21, losses narrow to Rs 1,701 crore". The Economic Times.
- ^ "Paytm parent One97 in red for 7th year, but cuts losses". Business Today. 24 December 2020.
- ^ "Voice&Data Award 2009 bestows Bharti CEO Manoj Kohli with Telecom Person of the Year award". Telecom Tiger. 8 August 2009.
- ^ (PDF). Archived from the original (PDF) on 1 February 2014.
- ^ "General Motors, One97 and ICICI Lombard win in first IAMAI India Digital awards". Afaqs. 9 December 2010.
- ^ "Leaders of Tomorrow Awards 2010". IndiaMART. 11 April 2012.
- ^ "Powered by One97, Airtel Talk2Me Awarded Best Innovative VAS Product". Telecomlead.com. 9 May 2011.
- ^ "Tech" (PDF). Deloitte. 2012.
- ^ "Top PE/VC-backed Indian companies, investment banks, law firms honoured at VCCircle Annual Awards 2013". VCCircle. 9 April 2013.
- ^ "BS awards 2014: And the winners are …". Business Standard. 24 March 2015.
- ^ "Winner of Disruptive Digital Innovator Award: One97 Communications Ltd". NDTV. 18 July 2015.
External links edit
- Official website