Paytm Eyes Free Cash Flow and AI-First Offerings, Says Vijay Shekhar Sharma
On May 5, Paytm posted a net loss of Rs 168.4 crore during the March quarter, as against an estimated loss of Rs 369.2 crore.
Paytm's next milestone is to be free cash flow positive in the near future, with an eye on AI-first offerings this year, according to Chief Executive Officer and Founder Vijay Shekhar Sharma.
Paytm has posted a second consecutive quarter of operating profitability if one doesn't take into account ESOP costs, the poster boy of Indian payments said in a letter to shareholders after fourth-quarter earnings.
"This has been possible through disciplined resource allocation and focusing on what has become our core revenue and growth driver—the payments and financial services distribution business," he said in the note. "Our focus on quality revenues has led to more rupees at the bottom line, and our incremental business continues to generate better margins."
In 2023, with the advent of early-stage artificial general intelligence, Paytm will see more opportunities to bring efficiencies to the business and AI-first offerings, he said.
"Our technology teams have started to see very encouraging results already. I see AGI as something like smartphones 10 years ago—very ripe for innovation and very potent to become part of everyday life at scale. As a technology company, we at Paytm will be at the forefront of this revolution," he said.
On May 5, Paytm posted a net loss of Rs 168.4 crore during the March quarter, as against an estimated loss of Rs 369.20 crore. The company had posted a net loss of Rs 392 crore in the preceding December quarter.
Its revenue grew 13.2% to Rs 2,334.50 crore on an increase in gross merchandise value, higher merchant subscription revenue, and the growth of loans distributed.
