Fintech

Vijay Shekhar Sharma Ambition to Make Paytm a $100 Billion Company

• ByStartupStory     |    July 8, 2024

Vijay Shekhar Sharma, CEO of Paytm, has set an ambitious goal to transform the fintech giant into a “$100 billion company.” Speaking at the 7th JIFF foundation day in Gurugram, Sharma emphasized that despite recent regulatory setbacks, Paytm is on the right trajectory for sharp growth.

“I have a personal ambition to make Paytm a $100 billion company,” Sharma declared, expressing his vision of making Paytm a globally recognized brand.

Following his remarks, shares of One 97 Communications, the parent entity of Paytm, surged by 9 percent during early trading hours on Monday.

Sharma’s comments come in the wake of significant challenges faced by Paytm. The company’s market capitalisation has nearly halved since the start of 2024, largely due to the shutdown of its payments banking arm, Paytm Payments Bank Ltd (PPBL), by the Reserve Bank of India (RBI) over regulatory compliance failures. On January 31, the RBI issued a directive preventing PPBL from accepting any new deposits.

“We should have done better, there are no secrets about it. We should have understood better…. We had responsibilities, we should have fulfilled much better,” Sharma admitted, reflecting on the situation.

In response to these setbacks, Paytm is streamlining its operations by divesting non-core assets and focusing on a distribution model. The company is particularly targeting the burgeoning opportunity in cross-selling, especially credit for small businesses.

“The dividend of the mobile payment revolution is credit,” Sharma noted, adding, “we envision providing loans ranging from as little as Rs 1000 to millions, fostering economic inclusivity at scale.”

Sharma also acknowledged the crucial role of Indian bankers in guiding Paytm’s journey as a publicly listed entity. “Bankers’ suggestion (public listing) is very important. We underestimate Indian bankers while taking our business model public,” he said.

In the last month, Paytm shares have surged by over 21 percent, reaching Rs 472.95 as the management strives to recover from the losses incurred post the regulatory action on its payments bank. However, the stock is still below the Rs 646 level where it started 2024.

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