Paytm - Need And Want: Dolat Capital Initiates Coverage
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Dolat Capital Report
Paytm, India’s sole designated ‘super app’ has emerged from the pure ‘want’ category to the ‘need’ status – this positions it as one of the strongest digital brands to garner significant share of opportunities that will evolve in the Indian internet ecosystem.
The parent company, One 97 Communications, is now positioned as a non-discretionary internet play.
Its deep reach into its user base, both in terms of economic strata or geography, makes it even more valuable for the customer who is usually the most unserved.
This is not true for most discretionary internet businesses where most incremental customers are dilutive in purchasing power (life time value – customer acquisition cost gets unfavorable) thus the opportunity gets limited to first 100-150 million users.
However for Paytm, the business model enables it to continue to enjoy large LTV for its customers base, as the existing users would broaden their ‘utilisation’ journey of the SuperApp both on needs and wants.
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