Paytm is a poster boy for Indian technology startup, only losing two -thirds of its value since IPO and has become a symbol of industrial accidents. Now its founder promises a sharp focus on financial performance to convince investors about company prospects who lose money.
Digital payment providers will become India’s first internet company to reach $ 1 billion in the annual revenue of this fiscal year in March, said Vijay Shekhar Sharma, 44. Brand, which is formally known as one97 communications Ltd. Turning his attention from growth to profitability, Sharma said in his first extensive interview after a high -profile public debut in November.
“We really pursue a $ 1 billion goal,” he said during the conversation for hours last week at the headquarters of chrome and new Paytm chrome in Noida, outside New Delhi, in a large green expanse filled with roaming cows. “For me, the public list is a kind of graduation, and takes PayTM to violate and for the benefit of giving me clarity of purpose.”
The collapse of PayTM’s stock prices worsens the crisis for Indian startups, sending a plummeting assessment when investors begin to grow carefully about their potential income. Young companies – dozens of them have reached unicorn status when capital flows to everything from online retailers to digital learning in the country of 1.4 billion – suddenly seeing their fundraising plans stopped. Even worse, the war in Ukraine and concerns of global recession increasingly obscure the picture for startups around the world in 2022.
Describing his approach as a return and reset, Sharma is in the mission to win the investor back. And he will have full hands: PayTM operation losses widening over the past year to around $ 350 million, competition is increasingly intensive and investors have made a lack of clarity in the company’s business model.
One step towards regaining trust is to demisify the PayTM income structure, said the founder, who is also the head of the company’s executive. He said his work could be simplified into two short paths: PayTM was in the payment business, and sold loans.
The Indian payment market is different from more advanced countries, because it passes through a card-based system that is popular in regions such as Europe and the US to jump directly from cash to mobile device payments. Meanwhile, interesting in flocks from competitors such as Google Pay Alphabet Inc., Amazon Pay Amazon and Walmart Inc.’s Phonepe, Sharma believes PayTM products – some are modeled in successful cases in other markets – Will Will help maintain his leadership position.
The sound box, for example, is a subscription of $ 2 per month which instantly reconciles payments and announces a successful purchase through speakers at the merchant counter. Other products produce a unique QR code for each transaction and allow buyers to pay quickly through the PayTM smartphone application and other applications that are common in China.
I want to make the paytm of the most relevant payment company in our day, “he said, wearing a blue shirt and jeans, which sat in the conference room framed with a background far from the high increase.
To expand the reach of PayTM, Sharma continues to improve the loan business. Although taking a traditional bank is a challenge, PayTM believes that it will win over users in the market which is currently a market for credit.
Both in payment and loans, PayTM has begun to issue more metrics. This revealed that more data about users, revenue flow and loan disbursement, treat investors who are equivalent to board members – and so far, the number has defeated internal expectations, Sharma said.
Sharma, who grew up to be the son of a teacher in the small town of Aligarh in Central India, founded Paytm Parent One97 Communications more than two decades ago. Companies began to offer digital payments in 2014, and since then Snared WHO from global investors including Masayoshi Son’s Softbank Group Corp, Warren Buffett’s Berkshire Hathaway Inc. And Jack Ma’s Ant Group Co., grew into the most payment brand everywhere in the country.
If the early years challenging, this is the most tiring phase of PayTM. IPO illuminates the PayTM business model, which allows investors to further examine company income and assessment logic. The founder defended both, quoting a list of the success of internet partners such as Nykaa and Zomato Ltd. and banker suggestions about the maturity of the paytm revenue model. Paytm falls 27% on the first day and is currently down more than 60% of its IPO price.
If you think about it, the price and time look messy,” Sharma said. “Used to get out of a person where things are far more controlled, we are not ready for this.”
In recent months, Sharma has told investors that her strategy will allow PAYTM to achieve operational breaks in September 2023. The company has cut expenses and is considering out of expensive cricket sponsors and ends the agreement to acquire the Raheja QBE General Insurance company and end a agreement To acquire the insurance company Raheja QBE General coverage.
“Previously the team used to be,‘ sponsor cricket? It is very cool! ‘Until now,’ how much money can we save if we give up? ‘”CEO said.
Skeptis said profitability would remain a tough battle. Analysts at the PVT Macquarie Capital Securities (India), which earlier to predict the decline in PayTM shares, said that in March that shares would plummet to 450 rupees. Sharma said that Members of the Council and Early Investor Ravi Adusumalli, founder of Elevation Capital, recently told him that he preferred a profit of $ 1 billion more than $ 1 billion in income.
Placing the money where his mouth is located, Sharma said his personal grant would only be after the stock was sustainable above the IPO offering price.
“I will be the last person paid in this company,” he said. “One day, we will get our rights.”
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