These are primarily postpaid loans or buy-now-pay-later products, which formed 56% of its loan disbursements during the September quarter (Q2FY24) in value terms. Postpaid loan disbursement is expected to halve in the coming months. Investors were visibly upset, dragging the stock down by almost 19% on Thursday.
Paytm's move follows Reserve Bank of India's (RBI) decision to increase risk weights for unsecured retail lending. News reports suggest that ZestMoney, a fintech lending startup specializing in buy-now-pay-later products, may close operations due to reductions in partnerships with lending partners.
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