New Delhi, India (TEH) – Vijay Shekhar Sharma, CEO and founder of One97 Communications, the company behind the thriving Paytm digital payments platform, has projected that the company will attain a positive free cash flow by the end of 2023. This optimistic outlook came to light during a recent company discussion about its financial results.
“During the first quarter (April-June) of FY 2023-24, our growth has been fueled by the expansion in payments, financial services, and commerce business,” Sharma asserted. “We stand unwavering in our commitment to be free cash flow positive by the end of the year.”
The company’s recent performance seems to corroborate Sharma’s claims. In a statement released just a day prior, Paytm revealed that its loss for the first quarter of the financial year 2023-24, ending June 30, had reduced to Rs 358.4 crore. This was a significant improvement from a loss of Rs 645.4 crore incurred in the same period the previous year.
The forecasted financial turnaround is not without its obstacles, however. The Paytm Payments Bank Ltd (PPBL), a branch of the company, is currently prohibited from adding new customers by the Reserve Bank of India (RBI). In response to this, Sharma informed that a compliance report has been submitted to the banking regulator and is presently under review.
Sharma admits that “the approval from RBI has taken more time than expected,” but he remains hopeful about a positive outcome in the near future.
These developments, if successful, may mark a significant turning point for the digital payment giant in its journey towards sustained profitability. With a blend of enterprise, optimism, and strategic business initiatives, Paytm is demonstrating its tenacity to weather the regulatory storm and come out stronger.