Paytm vows to stop cash burn

By

Isabelle Crossley

Published
Dec 22, 2022

Paytm has vowed to reduce its cash burn to zero. The digital payments and e-commerce business announced that it is well on the way to making this happen by controlling its spending and streamlining its operations. 

“It has got decided last month that it [cash burn] would no more be continuing,” said Paytm’s founder Vijay Shekhar Sharma at an industry event on December 21, ET Bureau reported. “As far as Paytm is concerned, we have publicly declared that we are far ahead of our ambitions- far meaning the border of magnitude ahead- in terms of re-setting our cash burns.” 
 
Paytm’s target is to become cash flow positive in the coming 12 to 18 months. Hong Kong based capital markets and investment group Credit Lyonnaise Securities Asia has upgraded its predictions for Paytm in November and expects its cash burn to end in between four and six financial quarters. 

Last year, Paytm listed on the Bombay Stock Exchange following its $2.5 billion initial public offering. However, following the monumental IPO, Paytm saw its stock value sharply decrease as investors worried about an impending recession and unreasonably high valuations of tech companies. 
 
Paytm was formally known as One97 Communications. A week ago, Paytm also announced a $103 million share buy-back plan which will cost the business $127million including all taxes and other expenses, TechCrunch reported.