Shares in a Canada Pension Plan Investment Board-backed financial technology company have rebounded following a disastrous first week on the Bombay Stock Exchange.
In the four days that followed One97 Communication Ltd.’s Nov. 18 debut, its stock price dropped by more than 37 per cent. By Nov. 29, following the release of a third quarter report showing a 64 per cent increase in revenue, the shares’ value rose to about 80 per cent of its initial price.
In early November, the CPPIB was an anchor investor in a US$1.1 billion investment round for One97 Communication. The company is best known for its mobile-based financial platform Paytm, which allows its 350 million users to perform a broad number of financial tasks through a single app.
In a report published by the CPPIB in January, Paytm was included as an example of a superapp, a term for financial services apps allowing consumers to make electronic payments without a traditional bank account.
“. . . In India . . . nearly a quarter of the adult population do not have bank accounts,” said the report. “This suggests the Indian market could be ripe for a superapp that provides easy payment functionality — a common feature of superapps.”