*Just chill, We will never spam you
Published by Ayush Bhambore(founder)
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
|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.|
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.
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
Simply because they want to increase their customer base as much they can, as company is in their early stages
You will get shock, but according to analysis sometimes they give you more cashback compare to their comission
(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
Here I am giving you a whole business expenditure model in PDF file you can downlaod and study it any time
Thank you for reading this article I hope you will now have a clear idea how paytm gives you a cashback