- Paytm reports 25% revenue rise, first profitable year despite challenges.
- Q4 slowed by regulatory issues, losses widened.
- Company expects AI to boost future performance.
Paytm, the Indian fintech giant, reported a 25% year-over-year revenue growth to 99.8 billion rupees (US$1.2 billion) for its fiscal year 2024.
It has achieved its first full year of EBITDA profitability since its 2021 IPO, while also reducing its annual loss by 20% compared to FY 2023.
Q4 potholes in the road
However, Paytm’s momentum was slowed in Q4 due to regulatory woes. Compared to the previous quarter, Q4 revenue fell around 20% to US$272.4 million, and its loss widened by nearly 2.5 times.
Founder and CEO Vijay Shekhar Sharma acknowledged the “near-term financial impact” but highlighted the company’s successful transition to other partner banks.
Paytm’s financial services arm saw a 30% increase in revenue to US$245.1 million, driven by an increase in loan distribution.
The Q4 performance was burdened by the ban on Paytm Payment Bank and an inquiry from the Enforcement Directorate.
AI to the rescue?
Despite challenges, Sharma expressed optimism, stating that the company is working on “significant cost efficiencies” and expects “tangible results” from its ongoing AI initiatives in the coming quarters.
Paytm’s resilience amidst turbulence underscores its determination to emerge stronger.
To read the original article: https://www.techinasia.com/paytm-issues-dent-q4-earnings-first-ebitda-profitable-year
