One 97 Communications Ltd

About the Company

One 97 Communications Limited is India's leading digital ecosystem for consumers and merchants, as we have built the largest payments platform in India based on the number of consumers, number of merchants, number of transactions and revenue as of March 31, 2021 according to RedSeer. The Company offered payment services, commerce and cloud services, and financial services to 337 million registered consumers and over 21.8 million registered merchants, as of June 30, 2021. Its two-sided (consumer and merchant) ecosystem enables commerce, and provides access to financial services through its financial institution partners, by leveraging technology to improve the lives of its consumers and help its merchants grow their businesses. In FY 2019, FY 2020 and FY 2021 and in the three months ended June 30, 2020 and 2021, revenue from its payment and financial services accounted for Rs. 16,955 million, RS. 19,068 million, Rs. 21,092 million, Rs. 4,298 million and Rs. 6,894 million, respectively, i.e., 52.5%, 58.1%, 75.3%, 78.0% and 77.4%, respectively of the revenue from operations. Its consumer and merchant engagement is core to its business model and its unit economics. For consumers, certain payment categories like money transfer, in-store payments and bill payments are highly relevant, high frequency use cases that are efficient and pre-dominant means of consumer acquisition for the company. Products (offered in partnership by the company with partner financial institutions, including its associates such as Paytm Payments Bank, and third parties) such as Paytm Wallet, Paytm Postpaid, Paytm Payments Bank savings account and FASTag help build consumer engagement and stickiness and help us retain consumers. Products such as personal loans, credit cards and insurance, offered through our financial partners, allow us to monetize users, at little or no incremental cost of acquisition, and at attractive economics. Similarly, for merchants, certain payments offerings, such as QR (for in-store) and Payment Gateway (for online) are our primary means to on-board new merchants. Products such as Soundbox and POS devices and Paytm Business Payments, increases their engagement and retention on our ecosystem with attractive monetisation characteristics in many cases. Products such as merchant lending, advertising and cloud allow us to monetize our merchants, at little or no incremental cost of acquisition, and at attractive economics. The Company segregates its revenue under two revenue lines, (i) Payment and Financial Services, and (ii) Commerce and Cloud Services. For its payment services, the company primarily generates revenues from (i) the transaction fee that it charges its merchants based on a percentage of GMV, (ii) consumer convenience fees that the company charges its consumers for certain types of transactions, and, (iii) recurring subscription fees from merchants for certain products and services, such as Paytm Soundbox and POS. The fee percentage that the company charges varies by the type of payment instrument used by consumers and the category of merchant. For its financial services, the company generates revenue depending on the type of services offered by it and through its financial institution partners on its platforms (i.e. lending, insurance, and wealth management) and within each business, the type of product. For its travel, entertainment and ticketing, and other commerce businesses, the company generates revenues by charging merchants a transaction fee, and/or consumers a convenience fee, which is typically linked to a percentage of transaction value. The Company has registered the "PAYTM" trademark under classes 4, 5, 6, 7, 23, 24, 25, 29, 30 and 31, among others, with the Registrar of Trademarks under the Trademarks Act, 1999.

Industry Overview

India is a country of hundreds of millions of young and aspiring consumers who are underserved for payments and financial services products that serve their needs. There are millions of small businesses in India that would benefit by having increased access to affordable software, technology and financial services. Consumers and small businesses can be served through technology-led, digital-first commerce, according to RedSeer. According to RedSeer, the market segments that we serve have large growth potential in terms of total addressable market size, due to significant under-penetration including as compared to developed and other developing geographies such as U.S. and China, respectively, and the ability of technology to grow the market.

Company History

One 97 Communications Limited was incorporated as "One 97 Communications Private Limited", a private limited company under the Companies Act, 1956, at New Delhi, pursuant to a certificate of incorporation dated December 22, 2000 issued by the Assistant Registrar of Companies, National Capital Territory of Delhi and Haryana. Subsequently, the name of the Company was changed to "One 97 Communications Limited", pursuant to a fresh certificate of incorporation dated May 12, 2010 issued by the Deputy Registrar of Companies, National Capital Territory of Delhi and Haryana, at New Delhi.

Products & Services

• The Company offers products and services to its consumers and merchants across payment services, commerce and cloud services and financial services.

Growth Strategy

• Grow consumer and merchant base
• Expand and enhance Paytm App's offerings for its consumers
• Deepen merchants' partnerships and drive adoption of technology among its merchant base
• Rapidly scale up financial services and expand access of financial services through deep tech-led solutions
• Expand into international markets