Paytm CEO Vijay Shekhar Sharma pens optimistic note to shareholders, says aiming to make company cashflow positive

Fintech giant Paytm aims to become "free cashflow positive in the near future," its founder and CEO Vijay Shekhar Sharma said in a letter to shareholders.

In the letter, which Sharma shared on Twitter, he added that in 2023, with advent of early-stage AGI (Artificial General Intelligence), there will be more opportunities to bring efficiencies in business and AI-first offerings.

"I believe that in 2023, with advent of early-stage AGI (Artificial General Intelligence), we will see more opportunities to bring efficiencies in business and AI-first offerings," he said in the note.

The Paytm chief further went on to compare AGI to smartphones 10 years ago. "I see AGI as something like smartphones 10 years back – very ripe for innovation and very potent to become part of everyday life at scale. As a technology company, we at Paytm, will be at forefront of this revolution," Sharma stated.

The letter comes after Paytm reported a 51.5 per cent rise in fourth-quarter revenue on Friday, aided by a surge in loan growth, and posted an operating profit for a second consecutive quarter.

In his message to the shareholders, Sharma expressed joy that the company has delivered EBITDA (before ESOP) profit. "I am very happy to announce our second quarter of EBITDA (before ESOP cost) profitability," he said.

He also added that it has been possible by disciplined resource allocation and focusing on what has become the company's core revenue and growth driver – Payments and financial services distribution business.

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"As a responsible payments technology company, we continue to build our business on foundation of strong adherence to compliance, operations risk and regulatory framework," Sharma mentioned.

"We firmly believe use of inhouse built technology for risk management and controls has become significant competitive advantage and we will continue to invest in this area as a key focus area," he added.

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