Paytm Mall loses its unicorn status

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Paytm Mall loses its unicorn status
BI India/Canva
  • Paytm Mall was launched in 2016 as a hyperlocal offline-to-online (O2O) business.
  • The company competed with Amazon, Flipkart and Snapdeal.
  • Paytm too lost nearly $9 billion in valuation after its public listing.
Paytm Mall — the ecommerce arm of digital payments giant Paytm — is now valued under $1 billion, as per the latest Hurun List. The company was valued at $3 billion in 2020, the report further added.

Eight other companies, mostly from China, also lost their unicorn status this year. A unicorn, in startup parlance, is a company valued above $1 billion.

CompanyValuation in 2020CountrySector
Katerra$4 billionUSAConstruction
Zume$4 billionUSABig Data
Greensill$3.5 billionUKFintech
Paytm Mall$3 billionIndiaEcommerce
Singulato$3 billionChinaE-cars
UCAR$3 billionChinaShared economy
Yiguo$3 billionChinaEcommerce
Yixia$3 billionChinaMedia and entertainment
Youxia$3 billionChinaE-cars
Source: Hurun Global Unicorn Index 2021

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Business Insider has reached out to Paytm seeking comments on the dip in valuation.

Paytm Mall was launched in 2016 as a hyperlocal offline-to-online (O2O) business and it turned into a unicorn in 2018 after raising nearly half a billion from SoftBank and others. The company was valued at $2.86 billion in 2019, when it raised funding from eBay.

The company competes with Amazon, Flipkart and Snapdeal, which filed its preliminary papers for an initial public offering (IPO) earlier this week.

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FY2018FY2019FY2020
Revenue₹775 crore ₹968 crore ₹703 crore
Net Loss₹1,806 crore ₹1,171 crore ₹479 crore
Source: Paytm Mall’s financial statements

Even One 97 Communications — the parent company of Paytm — witnessed an errorion of nearly $10 billion dollars from its valuation on the second day of its listing on the stock market. The company was valued at $19.9 billion in its public issue, but its valuation went down to $10 billion when its share prices touched ₹1,200 apiece.

The company currently sits at a market cap of ₹88,174 ($11.69 billion) and its shares are trading at ₹1,355 apiece.

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