Paytm is an Indian multinational financial technology company specializing in digital payment system, e-commerce and financial services. Vijay Shekhar Sharma is its founder and chief executive officer. He was ranked as India’s youngest billionaire in 2017 by Forbes with a whooping net worth of $1.3 billion.
Paytm shares dropped drastically recently due to alleged uncertain and volatile market conditions for high growth stocks.
However, today CEO Vijay Sharma wrote to his shareholders regarding updates on the operating performances and overall exclusive productivity of the company. One97 Communications is an Indian e-commerce and fintech company, which also runs Paytm issued a directive of results on the same.
The communication adhered to the operating performance for the 4th Quarter of Fiscal year 2022.
He stated statistically, “Our team’s phenomenal execution is evident in acceleration of monthly transacting users to over 70 million. Adoption of 2.9 million devices by our merchants. And disbursement of over 6.5 million loans per quarter through our platform.”
These were clear indications made promising continuous productivity and strategic implementation to meet long term shareholder objectives.
EBITDA Breakeven expectations
With better performance, the billionaire also issued estimated optics. ” I believe we should be operating EBITDA breakeven in next 6 quarters (i.e. EBITDA before ESOP cost, and by the quarter ending September 2023), well ahead of estimates by most analysts. Importantly, we are going to achieve this
without compromising any of our growth plans. Against the backdrop of volatile market conditions for high growth stocks globally. Our shares are down significantly from the IPO price. Rest assured, the entire Paytm team is committed to build a large, profitable company and to create long-term shareholder value. Aligned with this, my stock grants will be vested to me only when our market cap has
crossed the IPO level on a sustained basis. I am proud of the talent that we have in our company, and our culture of being ambitious and entrepreneurial. We continue to expand our team with great talent from both the technology and finance industries. We remain grateful for the support of our shareholders.”
The CEO also reported new trends of increase in lending. He made it evident that in cooperation to RBI regulations a surge in public lending was observed. Thus, opening the potential for new revenue generation channels.
The number of loans disbursed through their platform grew approximately by 374% YoY. Moreover, to 6.5 million loans in the Q4 of FY 2022. While the value of loans disbursed was around INR 3,553 Crores (YoY growth of 417%).
Despite the Pandemic, and induced saving at the start of FY 2020, Paytm saw its offline payments business accelerate with 0.9 million devices deployed in this quarter. Total number of devices deployed have grown to 2.9 million.
Further statistics of the operations as well as the revenue channels were disclosed which were responsible for such massive growth. This was definitely enough to settle the stakeholder ship at risk amid dropping share prices. However, this performance is highly inclusive of targeted estimates based on analysis of current real time data. The CEO, also disclosed in his notice that as much as they look forward to achieving these milestones. They are expected and not achieved. While markets remain uncertain and volatile, Paytm remains midway to fight for growth.