A day after One97 Communications, the parent company of Paytm on Friday, reported that the company’s losses widened to Rs 762.50 crore in the fourth quarter of FY22, Vijay Shekhar Sharma has been re-appointed as the Managing Director & Chief Executive Officer of the fintech.
Paytm said that Sharma has been reappointed to the post for a period of five years with effect from December 19, 2022. Moreover, Madhur Deora, the Chief Financial Officer of the company, has been appointed as an Additional Director w.e.f. May 20, 2022 for a period of five years, the fintech firm said in an exchange filing.
In another release, Sharma-led Paytm announced that the Board of Directors in a meeting on Friday approved the proposal to invest up to Rs 950 crore in Paytm General Insurance Limited (PGIL) in tranches, over a period of 10 years and to hold upfront equity stake of 74 per cent. With the investment, PGIL will become a subsidiary of the company.
Meanwhile, the digital payments company reported its March quarter results on Friday. Its net loss widened to Rs 761.4 crore compared to Rs 441.8 crore in the same quarter last year. Additionally, Paytm’s average Monthly Transacting Users (MTU), i.e., the number of unique users with at least one successful payments transaction in a month) witnessed a growth by 41 per cent YoY to 7.09 crore.
The company’s revenue from operations rose 89% year on year to Rs 1,541 crore while EBITDA loss before costs of employee stock options was reported at Rs 368 crore, down by Rs 52 crore from third quarter of the current fiscal.
The company said it is on track to break even by September 2023. “As announced in April 2022, we believe we will achieve operating breakeven (i.e EBITDA before ESOP cost) by September 2023. This will be driven by continued revenue growth, along with moderation in costs as operating leverage kicks in,” Paytm said.
