Shares of Paytm, the "Indian Alipay", plunged 10% on Monday, hitting the limit for three consecutive trading days, as the Reserve Bank of India considered revoking the license of Paytm Payments Bank Ltd., adding to the troubles of this once famous financial technology startup.
Reports emerged last week that the Reserve Bank of India was considering revoking the license of Paytm Payments Bank after it found multiple irregularities, including multiple transactions that exceeded regulatory limits, raising concerns about money laundering. Regulators have ordered the bank to cease much of its operations, which could affect the broader digital payments company's prospects.
Paytm said the company and its founder Vijay Shekhar Sharma are not under investigation by India's anti-money laundering agency, but the statements did little to ease investor concerns. Paytm's share price plunged 10% on Monday, and has fallen more than 40% in the past three trading days, losing about US$2.5 billion in market value.
The market value of the unprofitable company has fallen to about $3.4 billion, down about 80% from when it went public at the end of 2021. Over the weekend, the Bombay Stock Exchange changed the daily fluctuation limit for Paytm shares to 10%, after the stock plunged 20% on Thursday and Friday.