PayTM Business Model – How PayTM earns

So after Ola and Uber Business Model, I tried to figure out PayTM business model. So to be simple and straight I made a video explaining everything about PayTM. This will also include PayTM business model. Please go through the below video to understand PayTM business model. After demonetisation PayTM becomes more popular among all categories of citizen.

PayTM business model
                   PayTM business model

Paytm is an Indian E-commerce  website headquartered in Noida It was launched in 2010. It is owned by One97 Communications Limited . PayTm if founded by Vijay shekhar sharma, who now have 21% share in it, Alibaba- the Chinese E-commerce gaint holds 40 % Share in PayTM. In March 2015, Indian  Ratan Tata made personal investment in PayTM. Complete details of their investors and funding in available in below video. Please watch and clear all your doubts

PayTM business model :




Basically business model of Paytm depends upon 3 verticals:-

1.Recharge business ( Including Electricity, metro, insurance and other payments).

2.E-commerce Business ( Like Flipkart, snapdeal, Amazon.

3.Wallet – The payment Gateway business.


PayTM business model

All three models work on commission structure. In recharge business they charge commission from service provider like vodafone, airtel etc. Commission varies from 3-5%. Next is e-commerce, In which they charge commission from seller who list products on PayTM website. Now comes to their ultimate business which is PayTM wallet. Whenever you send money from their wallet to your bank, they will charge 1 or 4 percent commission on that

This Image will give you the clear picture of PayTM business model through their e wallet. I have explained all their business model in details in above video so you should watch it once


PayTM reported net loss of 1540 crores in 2015-16 against revenue of 920 crore. Download their financial statement from here :-

PayTM also bought Payment Bank license in 2015 and will soon launch their payment bank under the guidelines of RBI.

If you have any doubts regarding business model of PayTM then do comment below and if you want to know about business model of any other company then do tell us we will surely cover it in our future posts and also share with your friends.

Thank You !!