Mobikwik founder and chief executive officer Bipin Preet Singh on Tuesday said, Paytm has been “dumping capital” to gain customers even as demonetisation is throwing up opportunities for e-wallets and the competition in the sector is stiffening.
Singh launched a scathing attack on the largest player in the sector on Tuesday. He said, “We must be sensitive to companies, especially those that have massive foreign investments.”
“They can come into the country, dump capital and gain access to data.”
Singh’s remark was an indirect attack at sector leader Paytm in which global e-commerce major Alibaba has a stake – about 40 per cent as said by some sources.
Singh also criticized Paytm for providing massive discounts to users to increase market share.
“You do not need back-to-back print advertisements during demonetisation to gain customers. They give 50 per cent cashback on flight tickets and movies – where is the innovation in that? I think that’s where they have under-performed,” he added.
Singh also suggested stricter regulations for leading business practices. “Right now, I am putting all my time and energy into expanding my business,” said Singh.
Mobikwik, currently has around 40 million users and 500,000 merchants while Paytm, on the other hand has around 164 million users and around 1.5 million merchants. Paytm founder Vijay Shekhar Sharma has said Paytm is a fully India-owned company on several occasions.
