Zomato has surpassed Paytm in terms of market share

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The price at which the shares were sold to the initial set of public investors was a source of concern for two of India's most-anticipated tech IPOs, Zomato and Paytm. Those who bought Zomato shares in the initial public offering (IPO) made money, but those who bought Paytm shares in the IPO lost approximately 23% on the first day.

By noon, Zomato had surpassed One97 Communications, the publicly-traded company of Paytm, the digital payments behemoth. Paytm's share price was pushed down by the total market mood, according to Deven Choksey, managing director of KR Choksey Shares and Securities.
On Thursday (the day of Paytm's market debut), the sell-off that began earlier in the week accelerated, with 42 of the Nifty 50 equities trading in the red. However, this isn't the only reason why consumers sold their Paytm stock.

It's not as if Paytm's counsel didn't foresee it. Paytm was recommended to go for a lower value than $20 billion in its pre-IPO phase, according to a Bloomberg article published in October, but the business decided to forego the round entirely. Even Macquarie, a stock brokerage firm, has given Paytm an underperform rating, predicting that the stock could fall to as low as 1,200 rupees (compared to an issue price of 2,150 rupees) in the coming year. Paytm was, interestingly, the highest-valued Indian startup from 2019 to me this year. In its initial public offering, the company was valued at $19.9 billion. The only thing that made Paytm supporters happy was the Twitter meme fiesta.
The stock market fell as a result of the reduction in Paytm's share price.

Manoj Dalmia, the founder and director of Proficient Equities Private Limited, also pointed out three reasons for Paytm's shaky stock exchange debut. The problem encompasses everything from high valuation to fierce competition.These are some of the points raised by Manoj Dalmia of Proficient Equities, Shashank Udupa of Avalon, and Neha Nagar of TaxationHelp.in.

Paytm is one of India's largest digital payment providers, offering a variety of digital payment options such as the universal payments interface (UPI), credit and debit card payments. Paytm Money provides wealth management services, and Paytm Payments Banks provides banking services. There are 333 million total consumers, 114 million yearly transacting users, and 21 million merchants enrolled with the company. Although having a large user base, the company's revenue has been somewhat falling year over year (YoY). The company made a net loss of 1,761 crores on revenue of 3,186 crores.

Several have suggested that a smartphone is a super app in and of itself. Kavin Mittal, the man behind the $1.4 billion Hike Messenger, had similar intentions but abandoned the plan in January 2021 after realizing it was a wrong goal.

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