Paytm Posts First Operating Profit, Indian Start-Up Founders Rejoice
Paytm's success is celebrated by Indian startup founders as the company posts its first operating profit
7 February 2023
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Jayashri Ghorpade
Paytm, India's top digital payments and financial services company, achieved operating profitability for the first time in Q3FY23.
Paytm's profitability news has been met with celebration from the startup and investor community.
Paytm's journey to profitability has become a source of inspiration for many other startups.
Paytm, India's top digital payments and financial services firm, achieved operating profits for the first time in Q3FY23, surpassing its September 2023 target. The QR and mobile payments innovator posted an EBITDA of ₹31 crore, with a ₹424 crore improvement from the previous year.
Paytm reported a 42% YoY increase in its operational revenue, reaching ₹2,062 crore in the Q4. The growth was driven by higher merchant subscription revenues, loan distribution growth, and a boost in its commerce business.
Paytm Founder and CEO Vijay Shekhar Sharma tweeted, “Paytm, a business built from scratch with conviction on Digital India. From our first app release to becoming a verb in India to operating EBITDA profitability milestone - all in 10 years! Super Proud of Paytm team.”
Paytm's profitability news has been met with celebration from the startup and investor community. Kunal Shah (CRED Founder) and Rajan Anandan (Sequoia Capital India MD) took to social media to congratulate Vijay Shekhar Sharma and the company. Alan Mamedi (Co-Founder and CEO of Truecaller) and Tanmay Bhat (noted YouTuber and investor) also extended their congratulations to Sharma.
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“Good first steps in the Marathon that lies ahead Vijay,” wrote UpGrad co-founder and serial entrepreneur Ronnie Screwvala.
Founders including Sumeet Yashpal Mehta of LEAD, Vinay Singhal of Stage.in, Neeraj Arora of HalloApp, Imthiaz of Raaho, and Anand Jain of cleverTap celebrated Paytm's success and expressed excitement for the company's future.
HalloApp Founder and former WhatsApp Chief Business Officer Neeraj Arora, who is also a Paytm board member, called Paytm's profitability a great milestone for the tech ecosystem. Many startups find inspiration in Paytm's journey.
“Inspiring for us. Headed in the same direction!” LEAD’s Sumeet Yashpal Mehta responded to Sharma’s tweet. “The sharp execution that you’ve privately been known for, was publicly visible in every single announcement over last few quarters .. was only a matter of time Excited about following the journey to $100Bn!!" wrote Leverage Edu’s founder Akshay Chaturvedi.
Paytm's profitability milestone has been celebrated by several social media users who find Sharma inspiring to young people across India. In a letter to shareholders, Sharma expressed confidence in Paytm's next milestone of becoming a free cash flow generating company.
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