No More Cash Burn, Control In Spending: Paytm CEO
- ByStartupStory | December 22, 2022
Vijay Shekhar Sharma, CEO of Paytm has an assertive approach that there will be no more cash burn in the business adding that the fintech giant was already re-setting its ambition on controlling spending. CLSA had also upgraded Paytm last month saying that cash burn could end in another four to six quarters.Paytm said on Wednesday that going ahead there will be no more cash burn in the business and that the Indian digital payments firm was far ahead on resetting its ambition on controlling spends.
As per reports, Paytm incurred a loss of INR 571 Cr in Q2 FY23 on the back of INR 2,561.4 Cr in expenses. Shekhar Sharma commented on it saying “It got decided last month that it [cash burn] would no longer be continuing”. As it plans to reduce cash burn, the startup has also announced the buyback of its shares worth INR 850 Cr from the open market.Paytm board believes that this buyback is a sign of confidence that the company is on a clear path to deliver cash flow profitability, and this buyback will not have any impact on its growth plans in the near future or on its profitability plans,” the company said.
Paytm had net cash, cash equivalents and investable balance of 91.82 billion rupees at the end of September, according to its latest quarterly earnings report.
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