Paytm Is Ready To Move Forward With Compliance: Paytm’s Vijay Shekhar Sharma
Sharma’s comments come as the company witnessed rebounding of merchant operating metrics to January-levels and a stable consumer base during its Q1 earnings
Vijay Shekhar Sharma, the founder and chief executive of Paytm, India’s leading payments and financial services distribution company, said that the company remains dedicated towards building with compliance, striving for customer-centric innovation.
In a freewheeling and reflective conversation with Ankit Tiwari, co-founder of Chowk Media, Sharma discussed Paytm's responsibility towards empowering MSMEs (Micro, Small & Medium Enterprises) and highlighted efforts to digitise government payments across India. He also added that today Paytm exists because of small businesses in the country and its merchant partners.
Sharma also highlighted the partnership with governments, focusing on enhancing digital payment infrastructure. He underscored the dual role played by government and regulators in shaping the financial sector's future amidst recent challenges and regulatory scrutiny.
"I extend my heartfelt gratitude to each of our customers, merchants, and well-wishers. Together, we will drive the mobile revolution and payment revolution in our country. Challenges are inevitable for everyone, yet they present opportunities, and adversity breeds innovation," Sharma said.
Sharma’s comments come as the company witnessed rebounding of merchant operating metrics to January-levels and a stable consumer base during its Q1 earnings.
The company, which reported its first quarter results on Friday, said that new merchant signups are reaching January 2024 levels, with a marginal increase in its merchant subscriber base to 1.09 crore. It also said that daily merchant payment GMV (excluding disrupted products) has shown consistent improvement during the quarter and is almost back to January 2024 levels.
Recently addressing analysts after company results, Sharma had said that its recent quarter results marks the beginning of the end of ‘tough times’ at Paytm.
“Our quarterly performance has been in line with our expectations, demonstrating the resilience and capability of Paytm's products and services.” said Paytm founder and chief executive, Vijay Shekhar Sharma, addressing analysts on Friday evening.
“This is just the beginning of the end of the tough times and this quarter reflects the full impact of the challenges we faced. As a team, we are committed to navigating through these times with a focus on compliance. My team and I are committed to ensuring we return to profitable quarters," Sharma emphasised.
Paytm reported an operating revenue of Rs 1,502 crore and achieved a contribution profit of Rs 755 crore with a 50 per cent margin. Additionally, the total monthly transacting user base stabilized at 7.8 crore during the quarter.
Despite the full financial impact of recent disruptions evident in Q1 FY2025, there's a positive outlook, especially with expectations of increasing subscription revenues per device in the upcoming quarters. Brokerage firms Goldman Sachs, Jefferies, Bernstein, and Dolat Capital have collectively voiced optimism about the growth and recovery trajectory of following its first-quarter fiscal year 2025 earnings report on Friday.
Sharma added that his vision for Paytm is deeply rooted in its mission to empower 500 million Indians economically while maintaining a steadfast commitment to being a homegrown enterprise contributing to India's growth story.
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