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Paytm shares tank on market debut

Shares in Paytm fell by more than 27% on the Indian digital payments giant's market debut.

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Paytm shares tank on market debut

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The company raised about $2.5 billion in India's biggest ever IPO when it listed on the Mumbai stock market. However, it then proceeded to lose more than a quarter of its value in its first trading day.

Founded in 2009 as a digital payments platform, Paytm has diversified into new areas in recent years, including credit cards and wealth management.

While it has attracted investment from big names including China's Ant Group and Japan's SoftBank, some investors have raised concerns about the firm's lack of profits.

CEO Vijay Shekhar Sharma told Reuters he is not concerned about the opening day hit. "One day does not decide what our future is," he said, adding "it is new business model. It takes a lot for someone to understand it."

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