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This INQQ holding is on track to generate $1 billion in revenue

Paytm is on track to become India’s first internet company to hit $1 billion in annual revenue by the end of its fiscal year in March. The digital payment company is also focused on profitable growth.

“We are seriously pursuing the $1 billion goal,” Founder and CEO Vijay Shekhar Sharma said in an interview with Bloomberg. “For me, the public listing was kind of a graduation, and bringing Paytm to breakeven and profit gives me clarity of purpose.”

The Indian payments market is bypassing card-based systems popular in Europe and the United States to move directly from cash to mobile device payments. While attracting competitors like Google Pay and Amazon Pay, Sharma is confident that Paytm will retain its leadership position.

For example, its $2-a-month Sound Box subscription service instantly reconciles payments and announces a successful purchase through a loudspeaker at the merchant’s counter. Another product generates a unique QR code for each transaction and allows shoppers to pay through Paytm’s smartphone app. Sharma has also stepped up the company’s lending business, confident it will attract users in an underserved credit market.

Paytm’s parent company, One97 Communications, is the seventh-largest holding in the Indian Internet & E-Commerce ETF (NYSE Arca: INQQ)which aims to provide investment results which, before fees and expenses, generally correspond to the price and yield performance of the India Internet and Ecommerce Index.

EMQQ Global launched INQQ to capitalize on the rapid growth of the country’s digital and e-commerce sectors. In a press release announcing the launch of INQQ, EMQQ Global Founder Kevin T. Carter said, “India is an extraordinary investment opportunity and a central part of the industry’s growth story. e-commerce and digitalization in emerging and frontier markets beyond China,” adding, “India is the world’s third-largest and fastest-growing major economy, and we are excited to offer investors the first targeted approach to tap into this rapid history of India’s e-commerce and digitalization.

EMQQ Global noted that as the world’s third largest economy, India has recorded an average GDP growth of 7.5% per year and an average per capita income growth of over 500%. The country also contains the largest Gen Z population and the fastest growing middle class of any major economy.

Over the next decade, India will have nearly 700 million people born between 1980 and the 2000s entering their peak consumption years, fueling a massive wave of domestic demand. This demand will not be realized through traditional consumer channels, but through the new-age online economy, which touches every corner of society, from how we bank to how we order food.

INQQ has an expense ratio of 0.86%.

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