People often ask me how do I gather all the data about different business models for my Youtube channel( Intellectual Indies)

So I thought How about I assemble all the details about all the business models on my website 

After reading this blog, I am sure you’ll get all the details about the Business Model of Paytm from Funding to How do they earn.

Paytm is India’s Biggest platform in the e-wallet industry and e-commerce platform.

Started by Vijay Shekhar Sharma in 2010, Paytm changed its business model to a virtual bank model, marketplace and gold e-wallet.

Vijay Shekhar Sharma is an engineer from the Delhi College of Engineering and today he is worth $2.6 Billion.

One97 Communications Ltd of Paytm’s Parent Company got their first institutional investor, venture capital and SAIF Partners in the year of 2007.

Berkshire Hathaway confirmed investment of $356 Million for 3% – 4% Stake in Paytm in August 2018 and it was confirmed by Berkshire company that Warren Buffet is not involved in this transaction. 

berkshire hathway paytm investor- lapaas

Do you know Paytm serve 100 million users?

They offer Payment Solution to over 7 Million Merchants and allow customers to make seamless mobile payments.


According to an article published by Economic times, Paytm’s success story has become a case study at Harvard University.

vijayshekharsharma founder of paytm business model

According to Wikipedia, Revenue of Paytm is 814 crores INR (US$120 million, 2017)


But How Paytm Makes Money even after 50% to 100% Cashback?

It’s a worthy question to ask.

Let us first discuss their revenue model one by one.

The revenue model is divided into the following categories:

There was a time when Paytm was into Mobile recharge, bill payments only but today they have 8 Revenue Models.

Let’s find out.

1 MarketPlace (Paytm Mall)

2 Recharge Services

3 Bill Payments & Ticket Bookings

4 Payment Gateway Solutions

5 Paytm Wallet

6 Digital Gold

7 Paytm Payment Bank

8 Coupon Codes/Voucher cards


paytm 8 business model-paytm-case-study

1 Marketplace(Paytm Mall)

Do you know Paytm is the first company with a mobile-only marketplace in India?

Paytm gives you the leverage to sell on Paytm Mall.

The process is easy, Just sign up and upload catalog and that’s it.

Commission %= 2.8 from seller


According to Paytm Mall, sales of 20 lakh is generated every day.

Can you imagine?

Also, 90% of payments are prepaid, It has been tested that in Prepaid orders

Possibility of returns is less.




How is your payout from Paytm calculated?

paytm payout-revenue-model-ofpaytm

2 Recharge Services

They are linked with all the existing telecom service provider in the market, also metro card can be recharged and a specific commission is fixed.

Again Commission 🙂

Basically more user use paytm, more paytm earns.


3 Bill Payments & Ticket Bookings


With the help of Advance technology, Internet has made our lives simple and Paytm made is simpler.

Save more with Paytm, avail exciting deals & cashback offers while paying postpaid bill online. Be it Water Bills, Electricity Bills Paytm convert them into lifetime customers 🙂

Ticket bookings and any bill payments and what not!!

But How do they earn?

Commission 🙂 

4 Payment Gateway Solutions

Gateway solution is a one-time investment and mode of revenue is the same.
Commission 🙂

Although Gateway option setup is free along with maintenance charges but company charges a commission of 1.99% on every transaction.



Top linked accounts


5 Paytm Wallet

Paytm is a semi-closed wallet and it has been approved by RBI(Reserve Bank of India). It can used to pay for anything and almost everywhere.

According to RBI guidelines, Money deposited by users in Paytm Wallet is deposited into an Esrow Account with a partner bank.


And Interest is decided on the basis of an average of the deposited amount in a certain period of time( almost 58 weeks)


Whenever we receive cashback, why does it stored into wallet and not into our bank account? There is a reason J

Whenever you transfer money to bank account, paytm charge a little commission.

6 Digital Gold

Paytm has launched Digital Gold in partners with MMTC-PAMP allowing users to buy even gold worth 10 rupees. Yes, 10 Rupees and so on.

Paytm has launched Digital Gold in partners with MMTC-PAMP allowing users to buy even gold worth 10 rupees. Yes, 10 Rupees and so on.

How do they earn?

Their commission no matter if the price of gold rises or not.

Also, company main motive of Digital Gold was to create a platform where user can buy gold and store it in a digital form but user can also use the same gold to buy other services, be it recharge or bill payments.





7 Paytm Payment Bank

With the launch of Paytm Payment Bank, paytm aim to bring banking and financial services to half-a-billion un-served and under-served Indians.

Also, Paytm is linked with financial institutions and banks to sell their products and services like investments, loans etc. They earn a specific commission.

QR codes can also be scanned at various points(issues debit cards).

You can open a zero deposit digital current and savings bank accounts at an interest of 4%p.a.

Balance deposited above ₹1 lakh is shifted to a fixed deposit(FD) at an interest rate of 7% p.a.

How do they earn from a Bank?

8 Coupon codes/Voucher cards

They are linked with surplus brands. 

paytmcouponcodes- lapaas

It is clear that their whole business is based on commission.

Let’s have a look at some of the data:

Founded: 2010

Head office: Noida, Uttar Pradesh, India

No. of employees: 13,000  

Total Funding amount- 2.2 Billion

Investors: Softbank, SAIF Partners, Alibaba Group and Ant Financial

No. of Acquisition: 11

APP Downloads: more than 100 Million

Website Traffic: 53,540,050 Monthly visitors

NET Losses: Losses swelled to Rs.1606.05 crore

Board of Members Team- 8 Members

Competitors: Freecharge, Mobikwik, and RechargeitNow

Also, Ratan Tata is involved in investing in Paytm.

So have a look at some of their Marketing Campaigns:

Kisi ki life asaan karo #Paytmkaro

Kisi ki Life ka Paytm Bano Campaign:

Involvement of Bollywood: Good Marketing Strategy? Let me in the comment section below :B

URI Surgical Strike Paytm Campaign:

Akshay Kumar says #Paytmkaro for 2.0 Campaign:





Paytm Website Audit: Lapaas seo audit

UPDATED ON – 26/4/19

Paytm Case Study (Detailed Business Model) #1 e-wallet & e-commerce
  • Readers Rating
  • Rated 5 stars
    5 / 5 (14 )
  • Your Rating