Updated 14 July 2025 at 14:59 IST
Is Paytm the Next Big Bet? MFs and FPIs Boost Stakes in Bold Move
Domestic mutual funds now hold close to 14% in Paytm, up from 13% in the January–March period. The increase was driven mainly by investments from Motilal Oswal Mutual Fund and Bandhan Mutual Fund. Insurance firms also stepped up their exposure, taking overall domestic institutional ownership from 14% to 16% quarter-on-quarter.
Investor confidence in Paytm appears to be gaining momentum, with both domestic and foreign institutional investors raising their stakes in the company during the April–June 2025 quarter, according to exclusive data accessed by ANI.
Domestic mutual funds now hold close to 14% in Paytm, up from 13% in the January–March period. The increase was driven mainly by investments from Motilal Oswal Mutual Fund and Bandhan Mutual Fund. Insurance firms also stepped up their exposure, taking overall domestic institutional ownership from 14% to 16% quarter-on-quarter.
Furthermore, Foreign portfolio investors (FPIs) showed even stronger appetite. Their combined holding rose from 18% to 21%, the largest increase among all categories. Leading contributors included Amansa Holdings, Societe Generale – ODI, and Theleme India Master Fund.
However, Foreign Direct Investment (FDI) in the company declined, falling to 33% from 37%. This drop was mainly due to a 4% stake sale by Antfin (Netherlands), which had been one of Paytm’s largest shareholders.
Robust financials
The growing institutional interest comes on the back of Paytm’s improving financial performance. In the January–March 2025 quarter, the company reported a revenue of Rs 1,911 crore. It also achieved an EBITDA before ESOPs of Rs 11 crore (excluding UPI incentives) and narrowed its net loss to Rs 93 crore, excluding exceptional items.
Enhanced user experience
Paytm claims that it has rolled out several new features to improve user privacy, convenience, and transparency. Users can now hide or unhide specific payments, giving them more control over their transaction history. The app has also added a 'Receive Money' widget to the home screen, making it easier to access incoming payments quickly.
To offer more personalized options, Paytm now lets users create custom UPI IDs, so they don’t have to share their mobile numbers. The app also allows users to download their UPI transaction statements in Excel or PDF formats for easier tracking. In addition, Paytm now provides a single view of the total balance across all UPI-linked bank accounts, helping users manage their money more efficiently, as per the company's claims.
Overseas expansion
As part of its broader growth strategy, Paytm has extended UPI-based payment services to several countries. Indian travellers can now use the app to make payments in the UAE, Singapore, France, Mauritius, Bhutan, Sri Lanka, and Nepal, making cross-border transactions more seamless and familiar, according to the company.
Published By : Avishek Banerjee
Published On: 14 July 2025 at 14:59 IST