Paytm Mall, the eCommerce arm of digital payments giant Paytm, is valued at less than $1 billion, according to the most current Hurun List. The company was valued at $3 billion in 2020, according to the report.
Eight additional companies, mostly from China, lost their unicorn status this year. In startup language, a unicorn is a firm valued more than $1 billion.
Paytm Mall began as a hyperlocal offline-to-online (O2O) startup in 2016, and it became a unicorn in 2018 after acquiring nearly half a billion dollars from SoftBank and other investors. When it raised funding from eBay in 2019, it was valued at $2.86 billion. Amazon, Flipkart, and Snapdeal are competitors, and Amazon just filed preliminary documents for an initial public offering (IPO).
One 97 Communications, Paytm’s parent company, experienced a $10 billion valuation error on the second day of its stock market launch. The company was worth $19.9 billion when it went public, but by the time share prices hit $1200 per share, it had dropped to $10 billion.
Paytm Payments Bank, the company’s digital subsidiary, on the other hand, has seen a slew of key executive departures in recent months.
Abhishek Arun, the CEO of Paytm Payments Bank, Renu Satti, the COO of offline payments, and Abhishek Gupta, the senior vice president and COO of loans, have all submitted papers, according to sources. Arun, who had been with Paytm for more than five years, announced his departure on LinkedIn. He was previously a senior vice president at RBL Bank.
Satti led Paytm Payments Bank for nearly a year before being promoted to senior vice president of business and then COO-offline payments earlier this year. Although the specific reasons for Satti’s departure are unknown, sources say that the squad was experiencing some internal troubles.
Abhishek Gupta, who joined Paytm last year as senior vice president and COO-lending, has resigned and is currently on notice. Paytm’s president, Amit Nayyar, resigned the company two months before its initial public offering in November. In 2019, the former Goldman Sachs executive was engaged to assist the company’s financial services business get off the ground and run.
It appears that the organisation has been having some problems!