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Indian startup founders celebrate Paytm’s success as the company posts first operating profit

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India’s leading digital payments and financial services company paym to an operating profit for the first time in Q3FY23, significantly exceeding its September 2023 target. The QR and mobile payments pioneer posted EBITDA before ESOP charges of ₹31 crore, an improvement of ₹424 crore from a year ago.

Paytm said operating revenue increased 42% year-on-year to ₹2,062 crore in the Oct-December quarter, with the growth driven by an increase in merchant subscription revenue, growth in loan distribution and momentum in trading activities.

Paytm founder and CEO Vijay Shekhar Sharma tweeted, “Paytm, a company built from scratch with conviction on Digital India. From our first app release to becoming a verb in India to the milestone in operating EBITDA profitability – all in 10 years! Super proud of the Paytm team.”

News of Paytm’s profitability was met with glee from the startup and investor community, with CRED founder Kunal Shah and Sequoia Capital India MD Rajan Anandan taking to social media to congratulate the company and its founder Vijay Shekhar Sharma.

Alan Mamedi, the co-founder and CEO of Truecaller and well-known YouTuber and investor Tanmay Bhat also congratulated Sharma.

“Good first steps in the marathon ahead of Vijay,” wrote UpGrad co-founder and serial entrepreneur Ronnie Screwvala.

Edtech startups LEAD’s Sumeet Yashpal Mehta, Stage.in’s Vinay Singhal, HalloApp’s Neeraj Arora, logistics aggregator Raaho’s Imthiaz and CleverTap’s Anand Jain were among the founders celebrating Paytm’s success and expressing their enthusiasm for the company’s future.

HalloApp founder and former Chief Business Officer of WhatsApp Neeraj Arora, who is also an independent director on Paytm’s board, called the development a great milestone not only for Paytm but for the entire tech ecosystem.

Paytm’s journey to profitability has become a source of inspiration for many other startups.

“Inspiring for us. Going in the same direction!” LEAD’s Sumeet Yashpal Mehta responded to Sharma’s tweet.

“The sharp execution that you are privately known for was on public display in every single announcement over the past few quarters… was only a matter of time. Excited to follow the journey to $100 Billion!!” wrote Akshay Chaturvedi, founder of Leverage Edu.

Several venture capitalists including Tej Kapoor of IvyCap Ventures, Ritesh Banglani of Stellaris Venture Partners and Pankaj Jain of Saka Ventures applauded Paytm’s performance. “Congratulations Vijay and the entire Paytm team! May this quarter be the first step into a long, profitable future,” said Banglani.

Several social media users congratulated Sharma on making Paytm a milestone in profitability and inspiring young people across India.

In a letter to shareholders, Sharma of Paytm said he is confident that the company will soon reach the next milestone of becoming a free cash flow generating company.
Disclaimer: This article was generated and published by the Insider Studios team. You can contact them at [email protected]://londonbusinessblog.com/


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