Paytm invites pitches for media mandate

Fintech major Paytm has initiated a pitch process for its media duties, industry sources told e4m. The account size remains unclear, but sources indicate it is significantly smaller than the company’s advertising spend in previous years. 

The mandate is currently being handled by GroupM’s Wavemaker. Top media agencies plan to participate in the fresh bid.  

 “Paytm had initially called for a pitch last year, but the process stalled following the resignation of its Chief Marketing Officer, Sumit Mathur, in April 2024. The company has now revived the process, signaling a renewed focus on media strategy,” top industry leaders shared. 

Company officials refused to comment on the story. 

Paytm allocated Rs 1,069 crore towards advertising and promotions in FY23—up 25% from Rs 855 crore in FY22 and nearly double its FY21 spend of Rs 532 crore, according to financial reports.  

The company had also secured the title sponsorship for BCCI’s international and domestic cricket matches (2019–2023) in a Rs 325 crore deal but exited a year early, reportedly due to financial constraints. 

Last year, regulatory challenges added to Paytm’s evolving market position. On January 31 2024, the Reserve Bank of India (RBI) barred Paytm Payments Bank Limited from accepting deposits or top-ups in any customer account, prepaid instruments, wallets, FASTags and NCMC cards due to an alleged “persistent noncompliance”. 

Regulatory restrictions are believed to have hindered Paytm’s UPI expansion and new deposits, cutting its market share from 13% to 8% as rivals PhonePe and Google Pay gained ground.  

During the ban, the company focused on compliance, working with regulators to address concerns. In October, the NCLT lifted restrictions on onboarding new users.  

However, Paytm now faces a Rs 611 crore FEMA violation notice, further complicating its challenges.  

 “The outcome of the pitch process will be closely watched as Paytm refines its marketing priorities amid shifting business dynamics,” an industry executive noted.