New-age Firms In Big League

A host of companies are creating ripples across industries, giving established firms tough competition, as consumers and investors warm up to them alike.

- URVASHI MISHRA

RIDING ON THE back of innovation and adaptability, a cohort of enterprises has emerged, redefining industries and rewriting the rules of business. From Paytm's digital transactions to BigBasket's revolution in online grocery, to Nykaa's beauty products, new-age companies across industries are making their way into sectors, hitherto dominated by the big boys.

Yet, amid their meteoric rise and disruptive influence, the question persists: Are these entities here to cement their places, or they are just passing trends?

New-age companies have relied on aggressive expansion, heavy investments in technology and innovative ideas to acquire customers. Reducing cash burn, narrowing losses, and finding a sustainable path to profitability have been their focus areas of late. For instance, led by increase in GMV (gross merchandise value), merchant subscription revenues, and growth of loans distributed through its platform, Paytm parent One 97 Communications reported a total income of ₹8,400 crore in FY23, a 60% growth year-on-year.

As a pioneer in mobile payments, QR code, and Soundbox, Paytm has been at the forefront of the digital revolution, and continues to be the market leader in in-store payments. "With the country still in nascent stages of digital payments, we believe we have extensive growth potential ahead of us with untapped opportunities in payments and financial services," says the company spokesperson.

"They have cracked the model in financial services," adds Preeyam Tolia, equity research analyst at Axis Securities.