Paytm aims for profitability in next quarter amid digital transactions growth

Paytm, a financial technology platform with an estimated 200 to 250 million users, plans to increase profits next quarter. The company will continue to focus on digital transactions, using payments as a base for operations.

Vijay Shekhar Sharma, founder and CEO of One97 Communications (Paytm's parent company), stated the company's commitment to profitability on Sunday. “We are committed to working on profitability. We have not made any profit in the last few years. I can tell you very happily that with the team and the effort in the business that we have done, we are clearly committed to delivering profit in the next quarter,” he said. He further emphasized his focus on profit and free cash flow. “I believe that the best benchmark of the profit will be PAT and the free cash that the company generates. I am completely committed to delivering a PAT-growing company and I don't see very far,” he added.

Sharma acknowledged past regulatory challenges, stating, “We were mixing up things that were incoherent on strategy. There were plenty of lessons for us from the 2024 experiences. Every pain has a message to deliver. The experience made me survive and learn… better this happened at this early stage.” He admitted some market share loss due to these issues but believes they are now resolved. Paytm has since improved its processes and compliance.


Paytm's growth strategy centers on its payments business. Sharma believes this foundation is scalable and profitable, further boosted by government incentives and the upcoming National Digital Retail initiative. While market share is important, Paytm prioritizes acquiring and retaining customers. Lending, another core business, is being recalibrated for growth.

Sharma also highlighted the growth of demat accounts and mutual fund investments in India, predicting this will be the next major development following the digital payments revolution.

(With ToI inputs)