One97 Communications, which owns the Paytm brand, is aiming to achieve free cash flow positive status even as it continues to invest in innovative products and expand its distribution, it’s Founder and CEO Vijay Shekhar Sharma said on Tuesday.

Addressing shareholders at the 23rd Annual General Meeting (AGM), which was held virtually, Sharma said that the global aspirations of the company are very long-term and that Paytm believes that India is the “primary opportunity” for its growth.

Put Simply, Free Cash Flow is the money that is left over after a business pays its operating expenses and its capital expenditures.

Sharma is a significant beneficial owner and the largest shareholder of Paytm.

“When there is so much opportunity here in India, why should we think of going abroad? We should definitely export our technology and Soundboxes. But first, we have to fulfil the dreams and requirements of India. Only when we are in oversupply or expansion in India will we look to export”, Sharma said.

He was responding to Shareholders’ suggestion that the company should start exporting products and services in a big way.

It may be recalled that Paytmachieved operating profitability nine months ahead of its target last fiscal year. Its revenue from operations had seen a growth of 61 per cent y-o-y to ₹7,990 crore in FY’23 as against ₹4,974 crore in FY’22.

Paytm now has more than a million shareholders. This was the second AGM of Paytm since listing.

As the pioneer of mobile payments, QR codes, and Soundbox in India, the company is working to make small credit available instantly through mobile phones. “Our mission is to serve half a billion Indians and bring them into the mainstream economy with the help of technology,” Sharma added.

Highlighting the company’s focus on innovating for India, Sharma stated, “Our recent launches of Soundbox devices show how we understand the needs of Indian merchants and consumers. We are expanding our deployment each quarter with more and more innovative payment devices to bring technology to every small shop in India.”

Sharma also said that Paytm is now focusing on Artificial Intelligence (AI).

With an eye on safety, security, and the various risks involved in financial services, Paytm’s AI stack will serve India’s financial services ecosystem for decades to come, he said.

Madhur Deora, Executive Director, President, and Group Chief Financial Officer, Paytm, said that the company is going to be sustainably free cash flow positive very soon. “We don’t see a scenario under which we will need additional funding, at least in the near future, unless something dramatically changes. We don’t think the company requires more funding — debt or equity”, Deora said.

Deora highlighted that the company is currently debt-free and has ₹8,300 crore in cash. “We are very healthy from a Balance Sheet standpoint”, he said.

Deora also made it clear that Paytm believes in building rather than acquiring.

“We like to build things from scratch, whether it be technology, distribution, or product. I cannot rule out inorganic expansion in the future, but that is not something we shall use as a primary tool. Our primary way of growing is to grow the business organically, which we believe is a much better return on capital for all our shareholders”, Deora said.

Asked as to whether the company would look to pay an interim dividend, Deora said that “as the company becomes consistently profitable at the net income level, we will take it to our Board to figure out what should be our granular dividend policy”.

Once the company becomes consistently profitable, this dividend policy will be disclosed, he added.

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