Aim To Be Free Cash Flow Positive In Near Future, AGI To Bring Efficiencies: Paytm CEO To Shareholders

India’s mobile payments and financial services company Paytm’s founder CEO Vijay Shekhar Sharma has written a letter to shareholders where he said, the next milestone is to make the company’s free cash flow positive in the near future. Paytm has posted operating profit (EBITDA before ESOP cost) for two straight quarters.

In Q4 FY 2023, Paytm reported a 51 per cent jump in revenue from operations at Rs 2,334 crore while its operating profit was Rs 234 crore, including the full-year UPI incentive recorded during the quarter.

Sharma credited the company’s disciplined resource allocation for achieving profitability and focus on core revenue and growth drivers of payments and financial services distribution businesses.

“Our focus on quality revenues has led to more rupee to the bottom line and our incremental business continues to generate better margins. As a responsible payments technology company, we continue to build our business on the foundation of strong adherence to compliance, operations risk and regulatory framework,” he stated in the letter.

Looking forward, Sharma believes that with the advent of early-stage AGI (Artificial General Intelligence) in 2023, there will be more opportunities to bring efficiencies in business and AI-first offerings. The company’s technology teams have already started to see encouraging results. Sharma sees AGI as something like smartphones 10 years back – ripe for innovation and potent to become part of everyday life at scale. As a technology company, he said, Paytm will be at the forefront of this revolution.

In FY23, The company’s revenues grew by 61 per cent YoY to Rs 7,990 crore, becoming India’s highest-earning new-age company. Paytm is on track for its vision to bring 10 crore merchants and Rs 50 crore as payment users in the near future.