Fintech firm One97 Communications, which operates under the Paytm brand, expects to generate free cash flow by the end of this year, a top company official said on Saturday.
Paytm founder and CEO Vijay Shekhar Sharma said in an earnings call that growth for the company in the June 2023 quarter came on account of expansion in payments, financial services and commerce business.
“We are on our committed guidelines of becoming free cash flow positive by the year-end,” Mr. Sharma said.
Paytm has reported narrowing of loss to ₹358.4 crore in the first quarter ended June 30, 2023.
The company had posted a loss of ₹645.4 crore in the same period a year earlier.
Revenue from operations increased 39.4% to ₹2,341.6 crore during the reported quarter from ₹1,679.6 crore in the June 2022 quarter.
The company said its merchant payments volume (GMV) grew 37% year-on-year to ₹4.05 lakh crore in the April-June quarter of FY23-24.
Sharing an update on the RBI’s bar on the onboarding of new customers by Paytm Payments Bank, Mr. Sharma said it had submitted a compliance report to the banking regulator, and the same was under review.
He said that approval from the Reserve Bank of India had taken longer than it was anticipated but was expected to come soon.
During FY22, the RBI directed the Paytm Payments Bank (PPBL) to stop onboarding of new customers with effect from March 1, 2022.
In FY23, the apex bank appointed an external auditor to conduct a comprehensive systems audit of the PPBL.
On October 21, 2022, PPBL received the final report thereof from the RBI, outlining the need for continued strengthening of IT outsourcing processes and operational risk management, including KYC, at the bank.
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