Vijay Shekhar Sharma: Focus on payments, distribution of lending products: Paytm founder Vijay Shekhar Sharma

As part of the company’s first annual report since inception, Vijay Shekhar Sharma, the company’s founder and managing director (CEO), said in a letter to shareholders that the operating parent company will focus on payments and distribution of lending products. will do more Public in November 2021.

Sharma added that Paytm’s core business model is to acquire customers and merchants for payment services and sell financial services to them using its distribution leverage, collections, transactional and behavioral insights. He added that the company’s focus remains on Buy-Now-Pay-Later (BNPL) and helping financial partners distribute credit through mobile payments.

We have increased our focus on payments and the distribution of lending products and have prioritized these businesses in our resource allocation… We are also focused on showing how lenders can leverage this mobile payments relationship for lending. BNPL, which allows our partner financial institutions to issue credit to consumers at the point of sale, has become a favorite among consumers.

The Paytm founder also reiterated that the company remains on track to achieve operating profit by September 2023. He had written to shareholders earlier this April and announced that the company plans to break even by the end of September next year. He also added that his share grants will be awarded to him only after Paytm shares cross the initial IPO price.

“I believe that over the past year, our team has done a great job in massively improving our revenues and contribution margin, which has enabled us to invest in our payments and credit businesses while reducing our EBITDA losses,” Sharma said. “We are seeing excellent momentum in our businesses and are on track to achieve operating profit (EBITDA before Esop expense) by the quarter ending September 2023,” he said.

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One97 Communications Ltd. had reported a consolidated loss of Rs 2,396.4 crore for the fiscal year ended March 31, 2022 (FY22), up nearly 41 percent from the previous fiscal. The company had reported a total loss of Rs 1,701 crore at the group level last financial year (FY21).

As losses widened, the company posted a 65% growth in consolidated revenue to Rs 5,264.3 crore in FY22, compared to Rs 3,186.8 crore in the year-ago period, it had informed the exchanges earlier this year. The company’s revenue from operations nearly doubled to Rs 4,974.2 crore in FY22 from Rs 2,802.4 crore in FY22.

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