Paytm has announced it will reduce cash burn to zero. The digital payments and e-commerce business has announced that it is well on its way to making this a reality by controlling its spending and streamlining its operations.
“It was decided last month that it [cash burn] will no longer continue,” said Paytm founder Vijay Shekhar Sharma at an industry event on Dec. 21, the ET Bureau reported. “As for Paytm, we have publicly stated that we are going beyond our ambitions – meaning beyond the boundaries of importance – in terms of resetting our burning of cash.”
Paytm’s goal is to be cash flow positive in the next 12 to 18 months. Hong Kong-based investment and capital markets group Credit Lyonnaise Securities Asia upgraded its prediction for Paytm in November and expects its cash burn to end between four and six. financial quarter.
Last year, Paytm listed on the Bombay Stock Exchange following a $2.5 billion initial public offering. However, after the monumental IPO, the value of Paytm’s stock plummeted as investors worried about an impending recession and the irrational valuation of high-tech companies.
Paytm is officially known as One97 Communications. A week ago, Paytm also announced a $103 million share buyback plan, which will cost the business $127 million including all taxes and other costs, TechCrunch reported.
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