Paytm Issues Clarification On Canada App Closure; Shares Hit Lifetime Low

New Delhi: Paytm's parent company, One 97 Communications Ltd, on Wednesday issued a clarification on shutting down its Canada B2C (business-to-consumer) app. The digital payments firm, in a notification to the exchanges, said, "Paytm Canada consumer app is not material to the overall business of the company, contributing less than 0.1 per cent of the revenue (for the last fiscal year ended March 31, 2021."

It also stated that the move "has no impact on Canada-based Paytm Labs (including its R&D -- research and development -- and technical support business) or the company's overall business and revenue."

Meanwhile, shares of Paytm fell as much as 5.03 per cent today to hit an intraday low -- which is also its lifetime low -- of Rs 990. The stock has plunged almost 54 per cent from its issue price of Rs 2,150.

The scrip settled 4.33 per cent lower at Rs 997.35 on Wednesday.

Last week, the company had decided to shut down its Canada app starting March 14.

"In order to focus all our resources on the massive India opportunity, and given the immateriality of the Canada app, we have decided to sunset the Canada B2C app only," Paytm had said.

Paytm had launched its Canada division, called Paytm Labs Inc, as an R&D division, back in 2014.