Ahead of IPO, Paytm to recruit over 20,000 field sales executives

Paytm is going to hire over 20,000 field sales executives across the country ahead of its initial public offering (IPO). The move by the digital payments major comes amid strong competition from rivals Google Pay and PhonePe. 

The new hires will be able to earn around Rs 35,000 per month and will be tasked to promote Paytm's entire portfolio including POS machines, Paytm Soundbox, QR codes as well as other product offerings across the fintech major's ecosystem, such as merchant loans, UPI, insurance offerings, and Paytm Postpaid, sources told TOI. 

Although a company spokesperson did not comment on the matter, the company recently rolled out its field executive programme, with the objective to provide jobs to undergraduates. 

Also Read: Paytm IPO: Founder Vijay Shekhar Sharma to have protective rights 

As of May, Paytm held around 11% market share in UPI transactions, whereas PhonePe had 45%, and Google Pay commanded 35%, according to National Payments Corporation of India (NPCI) May data.

The Noida-headquartered company is poised to launch its Rs 16,000 crore IPO by October (2021). 

Paytm had filed draft papers for its initial share sale with the market regulator SEBI on July 15. It expects a response from the capital market watchdog by mid-September, after which it plans to proceed with listing as early as possible.

According to the draft document, the company plans to raise Rs 8,300 crore through fresh equity issuance and another Rs 8,300 crore through an offer-for-sale.

Paytm founder, Managing Director and Chief Executive Officer Vijay Shekhar Sharma and Alibaba group firms will dilute some of their stake in the proposed offer-for-sale.

Also Read: Paytm prepares for IPO in October, expects to break even in 18 months

The company has proposed to use Rs 4,300 crore for growing and strengthening the Paytm ecosystem, including through acquisition of consumers and merchants and providing them with greater access to technology and financial services.

The fintech major reported a narrowing of loss to Rs 1,704 crore in FY'21, from Rs 2,943.3 crore in FY'20 and Rs 4,235.5 crore in FY'19.

The total income declined to Rs 3,186.8 crore in FY'21, from Rs 3,540.7 crore in FY'20.

Paytm has reported negative cash flow of Rs 222.1 crore in FY'21 primarily due to operating losses and on account of additional working capital requirement.