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The Indian Smartphone Revolution: Paytm's Coming Of Age IPO

Aswath Damodaran profile picture
Aswath Damodaran


  • India was late to join the smart phone party, held back both by the relative expensiveness of these devices, as well as the absence of affordable and reliable cell service in much of the country.
  • Using the corporate life cycle framework to assess Paytm, it resembles an adolescent with attention deficit issues.
  • Paytm is a joint bet on an early entrant into the Indian mobile payment market, continuing to maintain market share, in a growing digital payment market in India.

Indian people on market

Naturecreator/iStock Editorial via Getty Images

A few weeks ago, I valued Zomato (FOOD), the Indian online food delivery company, just prior to its IPO, and argued that the excitement about its potential was tied to the potential for growth in

This article was written by

Aswath Damodaran profile picture
I teach corporate finance and valuation at the Stern School of Business at New York University. I am a teacher first, who also happens to love untangling the puzzles of corporate finance and valuation, and writing about my experiences. As a result, I happen to be at the intersection of three businesses, education, publishing and financial services, that are all big, inefficiently run and deserve to be disrupted. I may not have the power to change the status quo in any of these businesses, but I can stir the pot. Please note that the article that you are reading here was originally written on my blog and is republished in Seeking Alpha and other forums. Consequently, I neither track nor respond to comments here. I am sorry!   ==Editors' Note: Seeking Alpha monitors Dr. Damodaran blog and posts relevant articles on his behalf.

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Comments (6)

Mikro Investments profile picture
Thanks for the analysis. The revenue for Paytm from their DRHP seems to be INR3187 crores. In the table, it is provided as INR31.87m. Are the numbers in the table in thousands. Could you please clarify? Thanks.
Prof. Damodaran earned his credentials as a valuations expert, generally a quant exercise. In this abundant however brief article, he also proves his qualitative expertise. Excellent overview of Paytm.
Like him, I'd only invest in this IF mgmt grows up from its adolescent ADHT and into reasonable adulthood. One would think BABA should have a positive influence on this development. The fact that it hasn't to this point undermines my (and Charlie Munger's?!?!?!?!) thesis of holding BABA ADRs (as well as Xi crack down of course).
What is the best ETF to invest in India?
Is this going to be a global IPO or only available in Indian stock market?
@gmike21 Indian
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