Paytm falls again after woeful debut

Digital payments firm Paytm fell for a second session on Monday.

The fall shaved off $7.75 billion from Paytm’s market value since its dismal debut in India’s biggest initial public offering last week.

Shares fell 17.78% as of 0733 GMT to 1,271 rupees compared with the offer price of 2,150 rupees. On the listing day on Nov. 18, they crashed more than 27%.

Paytm had said on Sunday its gross merchandise value, a measure of overall sales, processed via its platform in October was up 131% from a year earlier.

Founded by Vijay Shekhar Sharma in 2010 as a platform for mobile recharges, Paytm counts SoftBank and Ant Group among its backers and had raised $2.5 billion in its IPO.

It grew quickly after ride-hailing firm Uber made Paytm a quick payment option in India and its use swelled in late 2016 after India’s shock ban on high-value currency notes boosted digital payments.

Separately, on the day when Paytm debuted, a working group of the Indian central bank suggested setting up a self-regulatory body covering participants in digital lending.

The move could lead to higher compliance-related costs for all fintech companies including Paytm, brokerage Macquarie Research had said in a client note on Nov. 18.