Paytm to become profitable next quarter: Vijay Shekhar Sharma
What's the story
Paytm's Founder and CEO, Vijay Shekhar Sharma, has announced that the digital payments company is on track to become profitable in the next quarter.
Speaking to CNBC-TV18 about the firm's financial trajectory, he said, "We have committed that next quarter we will be profitable—EBITDA before ESOP."
He also expressed confidence about the company's future profitability.
Financial outlook
Paytm's profitability strategy
Sharma emphasized that Paytm's huge cash reserves and lean cost structure are critical to its path to profitability.
Even though the firm's market share in the UPI ecosystem has fallen sharply, to just 5.5%, Sharma is hopeful of regaining lost ground.
He blamed the fall on regulatory issues and not trust issues, saying, "We weren't allowed to onboard at all."
Recovery plan
Sharma outlines recovery strategy for Paytm
Sharma has detailed a clear recovery strategy for Paytm, focusing on product innovation and deeper integration with the UPI ecosystem.
"It's a product gap, deeper integration to UPI ecosystem, and more merchant acquisition, which creates a flywheel that will bring our consumer back," he said.
He also claimed Paytm's brand recall and strong product features, give the company a competitive edge in the market.
Future prospects
Paytm's plan to expand UPI market share
Looking ahead, Sharma expressed confidence in Paytm's ability to expand its market share in the UPI ecosystem.
"It has to go up logically and at the same point, there is a network effect," he said, stressing that improving product features and integrating more into customer's lives will bring its customers back.