Paytm was once India's hottest startup. Its shares have crashed 36% in two days

Paytm, a prominent Indian startup, has experienced a significant decline in the stock market this week. The company’s value has dropped by 77% since its initial public offering in 2021, making it the largest IPO in the country. Despite India’s stock markets reaching all-time highs, Paytm’s shares have been crashing for two consecutive days. The company has faced challenges since its market debut, struggling to convince investors of its profitability amidst competition from domestic and American tech companies. Regulatory issues have also impacted Paytm, with the central bank imposing restrictions on its banking arm. The Reserve Bank of India recently ordered Paytm Payments Bank to cease accepting deposits due to non-compliance. As a result, the company’s market capitalization has decreased by $2 billion, leaving it valued at $3.7 billion. Paytm is now trading at around $6 per share. Nevertheless, Paytm is making efforts to comply with regulators and reassure its investors and customer base.