Paytm has more than a million shareholders: Vijay Shekhar Sharma
One of the worst-performing stocks since its market debut in 2021, Paytm’s shares have been on a bull run since the last few quarters on the back of its growing numbers. Key highlights of Paytm 23rd Annual General Meeting.
Founder and CEO Vijay Shekhar Sharma on Tuesday said the company now has more than a million shareholders across India.
One of the worst-performing stocks since its market debut on November 18, 2021, Paytm’s shares have been on a bull run for the last few quarters on the back of its growing financial numbers.
Although the current share prices come nowhere close to the issue price of Rs 2,150, the stock has zoomed over 80% from its 52-week low of Rs 438.35 on NSE on November 23, 2022. Analysts believe the stock can rise even further and can go beyond the Rs 1,000 mark.
“Our next milestone is to make Paytm free cash flow positive in the near future, even as we make investments in innovative products and expand our distribution,” Sharma said while addressing the shareholders during the company’s 23rd Annual General Meeting (AGM) held virtually on Tuesday.
He highlighted the company’s achievement of turning adjusted EBITDA positive in the December quarter, nine months before its initial guidance. The company's revenue from operations increased 61% YoY to Rs 7,990 crore in contrast to Rs 4,974 crore in FY22. Losses narrowed 26% from a year earlier to Rs 1,776.5 crore.
Reiterating the performance numbers, the CEO said the company has doubled the number of devices like Paytm Card Machine and Paytm Soundbox deployed across India, with 87 lakh devices deployed as of now.
The company recently launched a card soundbox, an omnichannel product, including PoS, QR, and soundbox capabilities in one, at a cheaper cost.
“Our merchants are also asking for omnichannel products, which we are helping them with,” said Executive Director, President, and Group CFO Madhur Deora.
Sharma added to this by saying the company’s next contribution will be a “small credit available instantly through the mobile phone”. He didn't reveal further details about the product.
The fintech firm already disburses digital loans—Paytm Postpaid, personal loans, and merchant loans—via lending partnerships. “We have a repeat rate of over 45% for merchant loans. We are being selective with this, but there is a tremendous growth opportunity," Deora said.
The AGM also found mention of the company’s latest pitch for its artificial general intelligence (AGI) stack. The CEO had previously mentioned investing in emerging technology and said the firm is building an indigenous AI system that would help flag possible risks and frauds in the financial sector by deploying the new technology.
“AGI software stack leveraging various abilities will create opportunities to lower cost, spread farther and make our financial system safer and secure. With an eye on safety and security and on the various risks involved in financial services, Paytm’s AI stack will serve India’s financial services ecosystem for decades to come,” Sharma added.
Paytm parent One97 Communications' stock price went down today, September 12, 2023, by 2.70%. The stock closed at Rs 904.2 per share yesterday and is currently trading at 879.95 per share.
Edited by Affirunisa Kankudti