Paytm CEO Vijay Shekhar Sharma 'optimistic' on lending as firm close to EBITDA profitability

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26 Aug, 2025 12:21

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Paytm founder and CEO Vijay Shekhar Sharma assured shareholders that the company is on the right path to profitability and free cash flows, in a letter to shareholders on November 14.

"One year ago, we made our way to the public markets. We are aware of the expectations that Paytm carries, and I assure you that we are on the right path to profitability and free cash flows," Sharma said in the letter along with the company's operating metrics update for October on the stock exchanges.

Paytm posted an increase of nearly five times or 387 percent in loan disbursements in October to Rs 3,056 crore from a year ago, the company said.

Also Read | Paytm Payments Bank receives RBI observations on IT report

The number of loans disbursed by Paytm grew nearly three times or 161 percent to 3.4 million.

On November 8, Paytm reported its results for the second quarter of the financial year 2022-23. The company's loss widened to Rs 571.5 crore in the quarter from Rs 645.4 crore a year ago. However, the loss narrowed from Rs 645.4 crore recorded in Q1FY23.

Consolidated revenue from operations for the quarter at Rs 1,914 crore increased by 76.2 percent over corresponding period last fiscal. The sequential increase in top line was 14 percent.

EBITDA loss before costs for Employee Stock Ownership Plan (ESOP) narrowed to Rs 166 crore from Rs 275 crore a year ago.

Sharma said on the numbers, "After our recent quarterly reports which showed strong operating leverage and reduction in EBITDA losses, we
are now excited about the next year of our journey, as we get close to EBITDA profitability and free cash flow generation."

He also mentioned the company's growing focus on its loan distribution vertical. Paytm distributed loans worth Rs 3,056 crore in October this year, a growth of 387 percent over Rs 627 crore in October 2021.

"In parallel, we are now scaling up lending distribution which can bring financial inclusion to hundreds of millions of people in our country. Due to the huge demand for lending in our country, our low penetration and the compounding nature of our lending journey, we are extremely optimistic about the prospects of our lending business," he said.