National Post (National Edition)
Savvy billionaire is right on the money
CURRENCY CRISIS TURNS INTO GOLDEN OPPORTUNITY FOR INDIA’S UNDISPUTED ‘KING OF DEMONETIZATION’
As Indian Prime Minister Narendra Modi was announcing his sudden decision to ban all large currency notes on a crisp November night, Vijay Shekhar Sharma was being feted by Forbes magazine in Mumbai. His phone was on silent mode.
Halfway through the red carpet event, Sharma turned on his phone, which exploded with calls, texts and notifications from his office at Paytm, India’s largest ewallet business.
He called his staff and said, “Our time has come.”
In the days that followed, the effects of the government’s surprise move, meant to cut down on corruption and money laundering, reverberated throughout India. Banks scrambled to replace the banned bills. People stood in long, serpentine lines without cash.
Overnight, Sharma’s Paytm, which allows users to pay bills online, became the default payment app for millions. The number of users jumped from 125 million to 185 million in just three months.
Its founder, the burly, bespectacled Sharma, emerged as the undisputed “king of demonetization.”
Even before Nov. 8, Sharma’s rapid five-year rise had become part of startup lore in India. He is swarmed for selfies at airports and hotels. He hobnobs with Bill Gates, power-struts at Davos, and is a case study for Harvard Business School students. His $8 billion company is the country’s official cricket team sponsor, a coveted tag for India’s billionaires.
“After my engineering degree, I could have easily got a job in America like so many people, but I dreamt very early of creating a Silicon Valley right here,” he said in a recent interview here.
India has the third most Internet users in the world, about 350 million, after the United States and China. This has spawned a new generation of Internet millionaires heading successful ecommerce and tech startups.
“These startup entrepreneurs represent a new cult of in-your-face competitiveness and aggression,” said Shankkar Aiyar, a financial commentator. “Many of them have emerged from India’s small towns and are not the pedigreed big city players. Their credo is, ‘Give me the opportunity and see what I can do.’ Sharma personifies this cult.”
At his glass-fronted, suburban office, the wall and coffee mugs carry one message: “Go big, or go home.” Nobody has a cubicle in the buzzing office. Sharma ordered his young, scruffy techies to go on the attack mode. “Go capture half the online movie ticket market by April,” he said.
His ambitious new payment bank will benefit the unbanked poor when it launches in April, he said. “I want to be the wealth manager for the auto-rickshaw driver dude.”
His office has Che Guevara posters alongside Om signs. He drives a blue BMW, but when he travels, he does not just want the best flight option, he wants the cheapest.
“I have not forgotten the value of hard-earned money,” he said.
Growing up in the northern Indian town of Aligarh, Sharma studied in a school that used Hindi, not English, for instruction. When he moved to the capital to study at an engineering college, he was bullied for his poor English.
He improved his English on his own, at night, earning money by creating web pages and content management systems for small companies while he was still in college.
But he went broke in 2003 after he borrowed from friends’ families for a startup that did not make money .
Then he built a business offering services to cellphone companies and sent whatever money he made to help his father repay loans.
Sharma has also earned new, unexpected enemies. A social media campaign attacked Paytm, calling it Chinese-owned. The morning after demonetization, he took the audacious step of running newspaper ads with the prime minister’s picture, congratulating him for “taking the boldest decision in the financial history of independent India.”
THESE STARTUP ENTREPRENEURS ... HAVE EMERGED FROM INDIA’S SMALL TOWNS AND ARE NOT THE PEDIGREED BIG CITY PLAYERS. THEIR CREDO IS, ‘GIVE ME THE OPPORTUNITY AND SEE WHAT I CAN DO.’ SHARMA PERSONIFIES THIS CULT. — SHANKKAR AIYAR, COMMENTATOR