The recent fiasco with Paytm listing is an eye-opener for investors that one should not be investing assuming that one will end up with listing gains.

It is not very easy for everyone to really understand the business models that new-gen companies. Paytm’s business model can be broadly divided into:
a. Marketplace
b. recharge services/ bill payments
c. payment solutions and wallet
d. Paytm bank
e. digital gold

The ecosystem is built in such a way that one can practically use this platform to deal with a wide array of transactions. It takes time to establish these ecosystems, especially with competition from other established competitors and limited loyalty from customers.

I don’t see the stock rebounding to the allotment price in the near future. Most of the investors will try to salvage out whatever they can get out of this investment.

Hold on to your investment if and only if you believe in their future vision and roadmap.