Teaching Note: Paytm Karo: Will Paytm’s Leapfrogged Strategy Lead to its Sustainable Growth? (No. IIMR-TN-22/11/2023)

Abstract

Following demonetization and amid the COVID pandemic, the phrase “Paytm karo” has become a common phrase among Indians when shopping. Paytm’s transformation of the payment system has resulted in a paradigm shift in the retail industry. What started as a platform for paying for recharge services such as phones, television, etc. and shopping expenses has grown in scope to include almost every thing. Paytm’s primary business area is digital payments, with customers and businesses able to securely process payments using credit cards, bank accounts, and other e-wallets. Paytm’s success story is remarkable because it is popular not only in big cities but also in small towns and villages. As a result, Paytm and similar companies have the potential to outperform previously dominant companies. However, it is necessary to consider whether Paytm’s leapfrogging strategy will continue to place it in a favourable position and what the future holds for the company. These topics will be discussed in this case.