June 12, 2024
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Paytm Announces Job Cuts and Asset Reduction Amid Record Sales Decline

Indian fintech pioneer Paytm has announced plans to cut jobs and trim non-core assets following its first-ever sales decline, driven by the fallout from a regulatory probe. The company’s net losses swelled to 5.5 billion rupees ($66.1 million) for the March quarter, and revenue dropped 2.6% to 22.7 billion rupees, marking the first decline since its 2021 IPO. Paytm’s shares fell by as much as 2% following the announcement.

The regulatory issues began in January when a finance watchdog ordered Paytm’s banking affiliate to wind down operations, severely impacting its business. This led to a loss of about 4 million monthly transacting users and a significant drop in loan disbursements. In response, CEO Vijay Shekhar Sharma has secured partnerships with major Indian banks to support instant money transfers and merchant transactions, aiming to stabilize the company.

Looking ahead, Paytm anticipates further revenue declines in the June quarter but expects meaningful improvements thereafter. The company remains focused on optimizing its operations and expanding its core fintech services, despite intense competition from PhonePe, Google Pay, and Jio Financial Services. Analyst Nathan Naidu predicts a strong recovery by fiscal 2026, driven by Paytm’s user acquisition strategies and diversified financial offerings.

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