Vijay Shekhar Sharma: Focus on payments, distributing loan products: Paytm Founder Vijay Shekhar Sharma

Ltd., the parent company that operates will focus on payments and distribution of loan products, the company’s founder and chief executive officer (CEO) Vijay Shekhar Sharma — stated in a letter to shareholders as part of the first annual report since publication in November 2021.

Sharma added that Paytm’s core business model is to engage consumers and merchants for payment services and sell financial services to them through the use of its distribution, collection, transactional and behavioral data. He added that the company’s focus also remains on buy now pay later (BNPL) and helping financial partners leverage credit sharing through mobile payments.

“We have focused our attention on payments and distribution of loan products and prioritized these businesses in allocating resources… We are also focused on showing how lenders can leverage this relationship with mobile payments for lending. BNPL, which allows our partner financial institutions to lend to consumers at the point of sale, has become a favorite among consumers,” Sharma said.

The Paytm founder also confirmed that the company is still on track to achieve operating profitability by September 2023.
shareholders earlier in April, this year, saying the company aims to break even by the end of September next year. He also added that his share grants would only be transferred to him once Paytm’s shares exceeded the IPO price on a sustainable basis.

“I believe our team has done a great job over the past year to significantly increase our income and contribution income, allowing us to invest in our payment and lending operations while reducing our EBITDA loads. We are seeing excellent momentum in our business and are on track to reach operating margin (EBITDA before Esop costs) by the quarter ending September 2023,” said Sharma.

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One97 Communications Ltd. reported a total consolidated loss of Rs 2,396.4 crore for the fiscal year ended March 31, 2022 (FY22), up almost 41% from the previous fiscal year. It reported a total consolidated loss of Rs 1,701 crore at the group level for the latest financial year (Fiscal Year 21).

As losses mounted, the company posted a 65% increase in consolidated revenue to Rs 5,264.3 crore in FY 22, compared to Rs 3,186.8 crore last year, as the exchange reported earlier this year. The company’s operating revenue nearly doubled to Rs 4,974.2 crore in FY 22 from Rs 2,802.4 crore in FY 21.

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