Profitability

News, The Morning Context

Restaurants desperately seek a third alternative in food delivery

Over the past week, restaurateurs have been talking about being subjected to advertising campaigns and unauthorized promotions by the food delivery platforms, often without prior consent or even knowledge. Restaurant owners confirm the practices, noting that often only major incidents get caught. The systemic squeeze on restaurants is a byproduct of the food delivery market’s state. Growth for the platforms has nearly stopped, and in this saturated market, the only way to grow is to take a bigger share from existing stakeholders: restaurants and customers.

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CRED set to raise $75 million at $3.5 billion valuation

The down round will help stabilize the Kunal Shah-helmed fintech’s runway as it tackles headwinds in unsecured lending. CRED is close to announcing a deal to raise $75 million from existing investors, with the round being led by Singaporean sovereign wealth fund GIC. The deal values the company at $3.5 billion, a decrease from its $6.4 billion valuation in 2022. The company reported revenue of Rs 2,473 crore and a loss of Rs 1,644 crore in FY23-24.

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Amid results showing signs of recovery, Vijay Shekhar Sharma teases a return for Paytm wallets

Paytm announced its results for the quarter ended March 2025, showing signs of recovery. Founder Vijay Shekhar Sharma teased a potential return for Paytm wallets, saying they “may be near a breakthrough or some resolution.” This is a significant hint for shareholders following the fintech company’s decline after the RBI restrictions on Paytm Payments Bank. The company is on track for profitability, with strong growth in financial services and merchant subscriptions.

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CRED is facing a catch-22 situation

CRED is facing a catch-22 situation. The platform, founded by Kunal Shah, spent heavily on growth and acquiring affluent users. Despite substantial revenue growth in FY25 (₹1,473 crore), the company is yet to turn a profit. Its main revenue driver is the loans business (about 85% of FY25 revenue), but the growth rate of loan distribution has suffered a downturn. Analysts suggest CRED may not have enough cash left to build another vertical or sustain its current high valuation without significant fundraising.

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Is the worst over for Paytm?

The year after the Reserve Bank of India’s (RBI) action against Paytm Payments Bank started hard for the company, threatening its operational existence. However, Paytm is showing signs of recovery. In the December quarter, its revenue came in at ₹1,901 crore. The company bagged the National Payments Corporation of India’s approval for a Third-Party Application Provider (TPAP) license, marking a key regulatory milestone. CEO Vijay Shekhar Sharma has emphasized compliance.

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