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How Paytm gives you a large amount of cashback

  Published by Ayush Bhambore(founder)

paytm

Introduction:


Paytm was founded by Vijay Shekhar Sharma in 2010 in Noida.It was started as online recharge company for mobile phones and DTH.At starting it was funded by it's parent company that is ONE97 which is founded by the Vijay shekar sharma itself.ONE97 holds only 40% of the paytm shares while most of the shares were hold by ALibaba chinese biggest e-commerce store and small companies with a small shares


founder

Earning through platforms and type of earnings

Recharge of mobile and DTH providers services. By taking comission from companies
Government Based services like Electricity bill etc No profit they earn through this segment.
E-commerce Business By taking comission from shopkeepers to sell their items online
E-wallet No profit earns through this segment
Payment Gateway (search google if you don't know payment gateway) Earning through comission from websites where paytm gateway is installed.

image

How they are giving such a large amount of CashBack


So let this crack out, As you know paytm gives you cashback when you recharge from it, basically what paytm does, Paytm charges comission whenever any customer recharge their phone from any comapny.And that recieved comission is your CashBack.


Didn't get it?



Let's take an example, suppose you have sim of Airtel and you recharge your balance through Paytm.So what acutally happen is, when you recharge, Airtel gives comission to Paytm it may go around 2% to 5% comission.After recieving comission, Paytm sends you that comission in the form of CashBack. As simple it is.



wait!!!wait!!wait!!!




Then How they earn profit?


Well, they are not earning any profit from E-wallet.As I mentioned above the table you can see that E-wllet is not earning any profit



But why Paytm is doing this?



Simply because they want to increase their customer base as much they can, as company is in their early stages


customer

You will get shock, but according to analysis sometimes they give you more cashback compare to their comission



Earnings and Profit

(This is very shocking but it is true, read carefully)



As per the 2015-2016 reports Paytm is in loss.They are giving to much cashback and offers to the customer to increase their user base.Paytm has loss of 600 cr rupees approxiamtely



paytm

Download Paytm whole Business expenditure of 2015 and 2016


Here I am giving you a whole business expenditure model in PDF file you can downlaod and study it any time

Click to Download


Thank you for reading this article I hope you will now have a clear idea how paytm gives you a cashback