One97 Communications Ltd, parent of online mobile payments firm Paytm, which has seen its market capitalisation erode since its public debut in November, will be shutting down its business-to-consumer (B2C) mobile application in Canada, the company said in a blogpost.
“During these unprecedented times, we have had to make some tough business decisions. Unfortunately, as of 14 March 2022, the Paytm Canada App will be shutting down permanently,” the blogpost read.
The mobile payments firm will also be disabling scheduled payments and top-ups for Paytm Cash, which includes EMT (e-mail money transfers), Canada Post and bank transfers, the company said. Bill payments that are submitted and have been pre-scheduled over the next 30 days will be accepted, the blogpost read.
Paytm had launched the B2C application in Canada in 2017. The company recommended users to use the balance in their Paytm wallets for bill payments, and gift card purchases by 14 March. Paytm, after 14 March, will not be compensating for any Paytm points or gift cards, which users fail to redeem, it said.
“This has no relation or impact on the Canada-based Paytm Labs or Paytm’s India business or revenue. We continue to stay committed to our mission of driving financial inclusion in India,” Paytm said in a statement on Friday.
Paytm had recently said that its loans’ disbursal volume shot up exponentially by over 400% year-on-year (y-o-y) to 4.4 million in Oct-Dec, while its value jumped 365% to Rs 2180 crore. The company also said that its gross merchandise value (GMV) grew 123% y-o-y to Rs 250,100 crore during the December quarter. In the second quarter of the current financial year, Paytm had reported an over 60% rise in its revenue.
However, the company has failed to impress stock market participants, as the company’s stock has plunged nearly 50% since it was listed on the stock exchanges in November last year. Recently, foreign brokerage firm Macquarie in a report had slashed Paytm's target price by 25% to Rs 900 per share from Rs 1,200.
The stock price of One 97 Communications Ltd., parent of Paytm, closed about 8.5%, up at Rs.1118.35 on BSE on Friday, on a day when the exchange closed trading almost flat at 61,223.03 points.