Well, Mukesh Ambani directly didn’t trigger the Paytm stocks to fall more than 11% in a single day but it was his own Reliance telecom company, Jio.
But why does Paytm need to fear Jio? And why did the stock fall to an all time low because of Jio?Well, news from the center of the fintech industry ring is that Jio is all set to enter the fintech industry as Jio Financial Services which will give direct competition to the likes of Paytm, PhonePe, etc.Following this news, Macquarie Research reported that Jio Financial Services (JFS) will become India’s 5th largest financial services firm if the demerger and listing are successful.There was commentary among the analysts that this could be a big problem for Paytm quoting, Paytm may feel the heat coming from Jio Financial services which would be stepping into the turf of Paytm, PhonePe, and even Bajaj Finance business model. This is an alarming note for the space, And that’s it, the Paytm investors had enough information for them to be convinced to sell and further trigger a selloff.Now, the Paytm stock is 79% down from its IPO, and Paytm investors sit in sorrow still. Probably having Paytm shares will not secure the future of you and your loved ones but having solid insurance coverage will definitely do the job for you,
