Acquisition by Bank or NBFC Best Scenario for Paytm: Bernstein

• Bernstein suggests that a partnership with a bank or NBFC could help Paytm leverage its customer base for cross-selling non-bank products.
• A significant investment from a major corporate house could enable Paytm to revive its business faster and avoid future regulatory shocks.
• Bernstein projects that Paytm, in its current form, is well-poised to achieve profitability by FY27.
• The brokerage firm believes that rapidly scaling up secured lending and getting a share of the merchant discount rate on UPI payments could drive profitability faster by FY26.
• Paytm's losses have soared due to the RBI barring its payments bank arm from business activities and the government's reduced budgetary allocation for digital payments.

Source: Inc42