Evaluating Comparative Financial Performances of Fintech Companies: Evidences from China and India

Abstract

Abstract

The research paper explores a comprehensive comparative analysis of the financial performance of Alibaba and Paytm, focusing on various financial ratios and market dynamics. It shows the impact of fin-tech on the global economy, emphasizing the role of digital payments as a game changer. The research methodology involves data collection from secondary sources, including annual reports and websites, covering ten years from 2011-2012 to 2021-2022. This employs DuPont analysis to assess the financial performance of both companies. The financial ratios include tax burden, asset turnover, interest burden, EBIT efficiency, and equity multiplier. The HHI measures market competitiveness in the payment-based fin-tech markets of India and China. The SWOT analysis is conducted to outline their strength, weaknesses, opportunities, and threats. The result shows Alibaba’s consistent outperformance by maintaining positive net income and return on equity (ROE), While Paytm faces losses and negative ROE.