Institutional Surge: Paytm's Q3 Fortifies Investor Confidence

Paytm's strong financial performance in Q2 2024-25 has led to a boost in institutional investor confidence, with ownership rising significantly. Domestic mutual funds and foreign portfolio investors have increased their stake, reflecting trust in Paytm's path to profitability and leadership in India's digital payments sector.


Devdiscourse News Desk | Updated: 09-01-2025 18:10 IST | Created: 09-01-2025 18:10 IST
Institutional Surge: Paytm's Q3 Fortifies Investor Confidence
Paytm (Image: Paytm). Image Credit: ANI
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Paytm's encouraging financial results for the second quarter of 2024-25 have spurred a marked increase in institutional investments, underscoring investor confidence in the company's trajectory. Recent filings disclosed a notable rise in institutional ownership to 68 percent in the third quarter, up by 4 percent, signaling substantial backing.

Particularly worth noting is the contribution from domestic mutual funds, which have amplified their investment in Paytm. This includes a 3.3 percent increase by these funds, bringing their total shareholding to 11.2 percent—a clear indication of sustained domestic institutional support and faith in Paytm's digital payments leadership.

Among the key players, Motilal Oswal Mutual Fund's stake increased to 2.1 percent, reflecting its belief in Paytm's growth potential, while Mirae Asset maintained a significant 4.2 percent stake despite minor adjustments. Meanwhile, Nippon Mutual Fund held steady with a 2 percent stake, further cementing local confidence. Foreign Portfolio Investors also played a crucial role, with a rise in institutional ownership marked by a 0.7 percent increase during the quarter, and its membership expanding by 20 new entities.

Bernstein emphasized Paytm's pivotal role in transitioning India's payments ecosystem towards monetization. Their strategy, which includes device-driven monetization and credit-focused payment solutions, aims at achieving sustainable profitability. As Paytm moves towards EBITDA breakeven by Q4 2024-25, backed by significant institutional faith, it continues to dominate the fintech space.

(With inputs from agencies.)

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