Domestic institutions continue to buy into Paytm, driven by strong Q2 FY2025 results and a clear path toward EBITDA before ESOP breakeven by Q4.
Paytm’s latest shareholding filing reveals a strong surge in institutional confidence, with total institutional ownership rising by 4% to 68% in Q3 FY2025. This significant growth reflects the increasing trust in Paytm’s strong financial trajectory and leadership in India’s digital payments ecosystem.
Domestic mutual funds were key contributors to this growth, increasing their shareholding by 3.3% to 11.2% demonstrating sustained interest from domestic institutions. Among the notable changes, Motilal Oswal Mutual Fund raised its stake to 2.1%, signaling its confidence in Paytm’s growth potential. Mirae Asset, while trimming its holding slightly, continues to hold a substantial 4.2% stake, reaffirming institutional trust in the company’s robust fundamentals. Additionally, Nippon Mutual Fund’s shareholding remained stable at 2%, further underscoring consistent support from domestic institutional investors.
Foreign Portfolio Investors (FPIs) further bolstered institutional ownership, with their shareholding increasing by 0.7% during the quarter. The number of FPIs holding Paytm shares grew by 20 entities, reaching a total of 237. FPI increased their holding from 115 million to 119 million shares, registering a 0.72% growth to ~19%, further underlining global institutional interest in Paytm’s business model.
As highlighted by Bernstein, Paytm leads the transition in India’s payments ecosystem from disruption to monetization. The company’s innovative strategies, including device-based monetization and its increasing focus on credit-driven payment solutions, position it well for sustainable profitability. With a clear roadmap to EBITDA breakeven by Q4 FY2025 and strong institutional backing, Paytm continues to strengthen its leadership in India’s rapidly evolving fintech landscape.