Paytm Annual Report: Paytm is set to achieve profitability by September 2023, the mobile payments and financial services company’s managing director and chief executive officer Vijay Shekhar Sharma has said in a note to its shareholders. Releasing the annual report of Paytm, Sharma said that the company is seeing excellent momentum in business, adding that over the past year its team has done a great job in massively improving the revenues and contribution profits.
“I am proud of what Paytm has achieved in the last year with rapid growth in payments, and a huge scale-up in lending and payments devices businesses. We remain committed to building a large, profitable company and creating long-term shareholder value,” Sharma said in the note to investors. Paytm released its first ever annual report as a publicly listed company on Friday, July 29.
One97 Communications, the parent company of Paytm on Friday reported a lower net loss of Rs 1,441 crore for the year ended March 31, 2022, that is FY22, as compared to the previous financial year where its net loss stood at Rs 1,704 crore. As per the annual report filed with stock exchanges, Paytm said its revenue from operations jumped by as much as 77 per cent YoY in FY22 to Rs 4,974 crore, up from Rs 2,802 crore reported during the last financial year.
“The core of Paytm’s business model is to acquire consumers and merchants for payments services, and upselling them financial services, by leveraging our distribution, collections and our transactional and behavioural insights. We have sharpened our focus on Payments and distribution of Lending products and have prioritised these businesses in our resource allocation,” Sharma said in the note.
A significant portion of Paytm’s revenue came from payment and financial services, which saw a growth of 83 per cent to Rs 3,858 crore in FY22 from Rs 2,109 crore in FY21. Revenue from payment services to merchants zoomed 87 per cent to Rs 1,892 crore in FY22 from Rs 1,012 Cr in FY21, primarily due to new large partnerships in payment gateway and an increase in our device merchant base, the company said. Meanwhile, the revenue from commerce and cloud services of Paytm increased 59 per cent to Rs 1,105 crore in the year ended March 2022 from Rs 693 crore in the previous financial year.
“I believe that over the past year, our team has done a great job in massively improving our revenues and contribution profits, which allows for investments in our payments and credit businesses while at the same time reducing our EBITDA losses,” Sharma told shareholders.
“We are seeing excellent momentum in our businesses and are on track to achieve operating profitability (EBITDA before ESOP cost) by the quarter ending September 2023,” he added.
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