Moneycontrol

Budget 2023Budget 2023

PARTNERS

  • Tata AIA Life Insurance
  • Hafele
  • Motilal Oswal
Upcoming Event : LeapToUnicorn - mentoring, networking and fundraising for startups. Register now
Budget 2023
Budget 2023
you are here: HomeNewsBusiness

Paytm has got customers by way of cashbacks, not by rendering services: Aditya Puri

Aditya Puri, who led HDFC Bank from inception and made it into the largest in the private sector space by the time he retired in 2020, further questioned Paytm’s model, wondering where are the profits if the company manages so much of payments.

March 30, 2022 / 07:29 PM IST
Source: Reuters

Source: Reuters

Veteran banker Aditya Puri on Tuesday raised questions about Paytm’s business model, saying the recently listed financial services company has earned customers not by rendering services but by way of cashbacks.

Puri, who led HDFC Bank from inception and made it into the largest in the private sector space by the time he retired in 2020, further questioned Paytm’s model, wondering where are the profits if the company manages so much of payments.

The remarks come amid a steep decline in Paytm’s shares, which are now trading 75 per cent lower than the price at which investors bought them at the initial public offering.

This is not the first time that Puri has gone public with his concerns on the models of such companies.