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Paytm to focus on core business, profitability, to extend leadership into AI tech: CEO Vijay Shekhar Sharma | Mint

LivemintLivemint · 11m ago
Paytm to focus on core business, profitability, to extend leadership into AI tech: CEO Vijay Shekhar Sharma | Mint
Medial

Paytm's CEO, Vijay Shekhar Sharma, announced that the company will prioritize its core payments business and focus on cross-selling financial services to achieve profitability in the near future. The company plans to adhere to regulatory compliance and obtain a payment aggregator license from the Reserve Bank of India (RBI). Paytm aims to shift its focus from EBITDA to PAT (Profit After Tax) profitability. Sharma also highlighted the company's commitment to being a "compliance-first" organization and the transformative potential of artificial intelligence (AI) in the industry. Paytm's AI systems are active in Japan, aiding in risk management and fraud detection.

Paytm revenue grows 25% and nears Rs 10,000 Cr in FY24

EntrackrEntrackr · 1y ago
Paytm revenue grows 25% and nears Rs 10,000 Cr in FY24
Medial

One97 Communication Private Limited, the parent company of Paytm, scaled 25% year-on-year during the fiscal year ending March 2024. The Noida-based firm, however, managed to maintain EBITDA profitability before ESOP throughout the last fiscal year (FY24). Paytm’s revenue from operations grew 25% to Rs 9,978 crore in FY24 from Rs 7,990 crore in FY23, its annual financial statements disclosed through the National Stock Exchange show. Income from payment services accounted for 62.48% of the total operating revenue, which grew 25% to Rs 6,235 crore in FY24. Meanwhile, income from financial services grew by 30% to Rs 2,004 crore. The remainder income came from marketing and other sources. Paytm also made Rs 547 crore from non-operating activities mainly from interest and gain on financial assets, tallying the total income to Rs 10,525 crore in the last fiscal year (FY24). To the tune of other technology firms, its employee benefits accounted for 39.4% of the overall expenditure. This cost surged 21.5% to Rs 4,589 crore in FY24 from Rs 3,778 crore in FY23. This includes Rs 1,466 crore as share-based payment aka ESOPs cost. Its payment processing charges grew 10.9% to Rs 3,280 crore in FY2. Paytm’s software/tech, marketing cum promotional, legal, and other overheads drove its total expenditure up by 15% to Rs 11,645 crore in FY24 from Rs 10,130 crore in FY23. Note: Paytm has booked Rs 1,465 crore of ESOPs and wrote off Rs 227 crore worth of investments which was made to its associate firm Paytm Payments Bank Ltd (PPBL) after RBI’s action. The decent growth and controlled expenditure helped Paytm to reduce its net losses by 20% to Rs 1,422 crore in FY24. Meanwhile, Paytm maintained its EBITDA profitability before ESOP throughout the year which stood at Rs 559 crore in FY24.

As new age companies race to profitability, Zomato brings down ESOP expenses quickest

Money ControlMoney Control · 1y ago
As new age companies race to profitability, Zomato brings down ESOP expenses quickest
Medial

Listed new-age companies like Zomato and Policybazaar have significantly reduced their employee stock option (ESOP) expenses in the first half of FY24 as they strive for profitability. Zomato leads the pack with a 44% decrease in ESOP costs, while other companies like Policybazaar and Delhivery have also made notable reductions. However, Paytm's ESOP costs have risen by 4% during this period. These companies have faced criticism for their large ESOP grants to top executives before IPOs, impacting their profitability. Despite the reduction in ESOP expenses, Zomato's overall employee benefits spending has marginally increased. Paytm remains the biggest spender in terms of ESOPs.

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