AGM Updates of Paytm - In the race to get Payment Aggregator (PA) license

16 October 2024

• ​Vijay Shekhar Sharma emphasized the shift in focus from EBITDA before ESOP to PAT (Profit After Tax) as a benchmark. The company aims to achieve true profitability and is committed to focusing on PAT.
  
• Paytm's financial services division experienced substantial growth, with a 25% y-o-y revenue increase to ₹559 Cr in FY24. The company distributed loans worth ₹27,126 Cr and had 7.8 Cr monthly transacting users. Paytm also focused on social impact through initiatives like Paytm Soundbox for small merchants and partnerships for sustainability and education.
  
• Paytm plans to apply for a payment aggregator (PA) license from the Reserve Bank of India (RBI) in due course. The company also expressed its commitment to leading the industry with advanced AI capabilities and emphasized its AI systems' operational status in Japan.
  
• In 2022, RBI rejected the PA license with instructions to reapply in compliance with Press Note 3 under the foreign direct investment (FDI) norms. Currently, Paytm is working towards compliance with Press Note 3 under the foreign direct investment norms. The recent approval for downstream investment in its subsidiary, Paytm Payments Services Ltd., indicates progress in this direction.