Vijay Shekhar Sharma reveals Paytm's 3-3-3 growth model, profitability roadmap

At present, the Noida-based unicorn is in its second phase of that journey, having spent the last 12 months reducing its EBITDA losses by 50 percent year on year. The next two years will be all about monetisation and expansion.

Thursday February 06, 2020 , 3 min Read

Digital payments giant Paytm has had an astonishing journey since India’s infamous demonetisation in 2016. Now, four years down the line, the market is different. With UPI eating into the transaction pie of digital wallets, it’s clear that payments will continue to exist as a zero-fee business in the country.

But Paytm is planning India’s first technology payments IPO, eyeing Financial Services as the next major frontier of growth. The plan is simple – monetising the existing customer base while achieving profitability.

Founder and CEO Vijay Shekhar Sharma tells YourStory, "Paytm’s growth is divided into three segments. The first three years were all about finding the right product-market fit; the next three were about revenue and monetisation. The last phase will be about profitability and free cash flows."

At present, the Noida-based unicorn is in its second phase of that journey, having spent the last 12 months reducing its EBITDA losses by 50 percent year on year. The next two years will be all about monetisation and expansion.

In an interaction, Vijay Shekhar Sharma reveals the advantages of having different organisations under one umbrella, and why it’s important to reach profitability before going for an IPO.

Paytm to be profitable in 18-24 months: Vijay Shekhar Sharma

Paytm’s bid to profitability is a part of its plan to file for an IPO, which the company declared in 2018. Over the last few years, One97 Communications has launched multiple affiliates to boost commerce transactions on its platform, including Paytm Entertainment and Paytm Travel.

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