Paytm’s encouraging financial results for the second quarter of 2024-25 have led to a significant increase in institutional investments and underlined investor confidence in the company’s performance. Recent filings showed a notable increase in institutional ownership to 68 percent in the third quarter, up 4 percent, indicating significant support.

Of particular note is the contribution of domestic mutual funds, which have increased their investments in Paytm. This includes a 3.3 per cent increase in these funds, taking their total shareholding to 11.2 per cent – a clear sign of continued domestic institutional support and confidence in Paytm’s leadership in digital payments.

Among key players, Motilal Oswal Mutual Fund’s stake rose to 2.1 percent, reflecting its belief in Paytm’s growth potential, while Mirae Asset retained a significant stake of 4.2 percent despite minor adjustments. Meanwhile, the Nippon Mutual Fund remained stable at 2 percent, further bolstering local confidence. Foreign portfolio investors also played a crucial role, with institutional ownership increasing 0.7 percent during the quarter and membership growing by 20 new companies.

Bernstein highlighted Paytm’s pivotal role in transforming India’s payments ecosystem towards monetization. Their strategy, which includes device-driven monetization and credit-focused payment solutions, aims to achieve sustainable profitability. As Paytm approaches EBITDA breakeven by Q4 2024-25, backed by strong institutional confidence, it continues to dominate the fintech space.

(With contributions from agencies.)