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Is Paytm Chinese company ?

PAYTM COMPANY ANALYSIS


COMPANY 

- One97 Communications Ltd. - Regd: 2000, New Delhi

Paytm was founded and incubated by One97 Communications Limited in 2010 as a prepaid mobile recharge website.

Paytm is an Indian electronic payment and e-commerce brand based out of Delhi NCR, India. Launched in August 2010, it is a consumer brand of parent company One97 Communications.

KEY PERSON:
- Name: Mr Vijay Shekhar Sharma
- Designation: Founder, MD & Chairman)
- Remuneration: ₹ 3 Crore
- Other Benefits: 2 cars, drivers, home, meal, fuel, insurance, medical, utility bills, PF, gratuity, etc. - Shareholding: 16%

BOARD OF DIRECTORS: 
- Jing Xiandong 
- Joesph Chung Tsai 
- Mark Schwartz 
- Ravi Adusumalli 
- Todd Combs 
- Munish Varma 
- Mukul Arora 
- Pallavi Shroff 
- Chen Yan 
- Ting Hong Kenny Ho

AUDITORS: 
- Internal: KPMG 
- External: Price Waterhouse 
- CS: PI & Associates


SHAREHOLDING: - 

Foreign Investors: 83%
Paytm is funded by the following investors:
  1. Alibaba Group (from China)
  2. SAIF Partner (with offices in Hong Kong, China & India)
  3. Sapphire Ventures (from the USA)
  4. Ratan Tata (from India)
  5. Mountain Capital (from Taiwan)
  6. Berkshire Hathaway (from the USA)
- Mr. Vijay Sharma: 16% - ESOP & Others: 1%

FOREIGN FULLY OWNED SUBSIDIARIES:

- One97 Pvt. Ltd., Singapore 
- One97 Ltd., Nigeria 
- One97 Inc., USA 
- One97 FZ LLC, Dubai 
- Ciqual Ltd, UK

INCOME STATEMENT: 
- Revenue: ₹3,391 Crore 
- Expenses: ₹7,255 Crore 
- Net Loss: ₹3,960 Crore

CAPITAL STRUCTURE: 

- Paid-up Capital: ₹6 Crore 
- Auth Capital: ₹104 Crore

BALANCE SHEET:

 - Assets: ₹8,683 Crore
 - Liabilities: ₹2,647 Crore
 - Equity: ₹6,036 Crore

CASH RESERVES: 

- Bank Balance: ₹235 Crore 
- Bank Overdraft: ₹695 Crore 
- Net Cash: -₹460 Crore

SUBSIDIARIES: 

- Total Subsidiaries: 33 
- Countries: India, Nepal, Singapore, Nigeria, Dubai, US, UK, Ivory Coast, Malaysia, Rwanda, Tanzania, Bangladesh, Benin, Uganda

KEY BRANDS: 

- Paytm Money 
- Paytm Payments Bank 
- Paytm Entertainment


EMPLOYEE STOCK OPTIONS:
 - Total Options: 9,60,743
 - Share Price (wt. avg): ₹6,513

SHARE CAPITAL:

 - Authorized Capital: ₹104 Crore
 - Outstanding Shares: 10 Crore
 - Face Value: ₹10 / share
 - Issued + Paid-up: ₹57 Crore

EXPENSES: 
- Employee Cost: ₹627 Crore
- Marketing & Other: ₹6,628 Crore 
- Total: ₹7,255 Crore 
- Reason of Loss: Brand Building 
- Future Prospects: Expanding into insurance, broking, hotel businesses

TOTAL DEBT: ₹695 Crore


The Company has incurred huge capital expenditure in creating a brand and establishing its business activity. The business & consumer confidence is expected to improve in the coming years.

Is Paytm a Chinese owned company?

One 97 Communications Limited has collaboration with Chinese investors and have foreign nationals as directors on its Board of Directors. Without going into many details, I can say as, on 27th Nov 2016, the company have an equal number of Indian and foreign directors on its board.

Ownership of the Paytm


The ownership structure of the Paytm company divided into three different companies.

1) Alibaba Group has (42%) of share in Paytm business and is a china based company.

2) One97 Communications Ltd has (38%) ownership, Which is India based company.

3) Softbank has (20%) share in Paytm which is a Japan-based company headquartered in Tokyo.

Though I would like to call it an Indian Company, most of the funding has come from Alibaba group , Ant Holdings and also SoftBank etc. Thus it is a Chinese company with an Indian facade, or safely we can call it a joint venture with Chinese Companies.

THANK YOU !


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