Vijay Shekhar Sharma, founder and CEO of Paytm, has set a bold ambition to elevate the company's value to $100 billion, amidst efforts to rebuild following a recent regulatory setback. That's an uphill challenge for a firm that has seen its market capitalisation drop to around $3.5 billion after the central bank cracked down on the payments company.
Earlier this year, the Reserve Bank of India slapped major business restrictions on Paytm Payments Bank Limited, effectively ended a bunch of its core operations, due to non compliance.
Sharma acknowledged the recent crisis, describing it as a test of maturity and responsibility.
“We should have understood better and fulfilled our responsibilities more effectively," Sharma candidly remarked. "We are now far better prepared to navigate challenges," he added.
“I have a personal ambition to make (Paytm) a $100 billion Indian company,” Sharma said during a freewheeling chat at an event in Gurugram on July 6.
As Paytm works on rebuilding its verticals, including pruning of non-core assets and focussing on distribution model, the founder emphasised the next big opportunity in cross-sell, particularly credit for small business.
"The dividend of the mobile payment revolution is credit," Sharma noted. “We envision providing loans ranging from as little as 1000 rupees to millions, fostering economic inclusivity at scale."
Addressing the significance of going public, Sharma drew a poignant analogy. "Going public is like marriage—it brings greater responsibility," he remarked while expressing confidence towards stock stabilisation.
He expressed appreciation for the guidance from Indian bankers, underscoring their crucial role in shaping Paytm's trajectory as it navigates the complexities of becoming a publicly listed entity.
“Bankers suggestion (public listing) is very important. We under estimate Indian bankers while taking our business model public,” he said.
Paytm is facing challenging times following stringent regulatory measures imposed on its associate company, Paytm Payments Bank Limited (PPBL), by the Reserve Bank of India (RBI). The RBI asked Paytm Payments Bank on January 31 to stop accepting new deposits in its accounts and its popular digital wallets from March, citing supervisory concerns and non-compliance with rules. These restrictions have significantly impacted Paytm's operations, affecting its market position and investor sentiment.
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