Letter to Shareholders
Dear Shareholders,
Last year has been one of the most significant learning experiences for
us. We focused on generating free cash flow and delivered on that for the full year. We
were also laser-focused on delivering profits after accounting for all costs, including
ESOP costs, and we came very close to achieving that target.
In the last quarter, we encountered regulatory action on our associate
entity Paytm Payments Bank Limited ('PPBL'), which presented significant challenges and
provided us with many valuable lessons. I am very proud of our resilient Paytm team, who
navigated this situation with courage, dedication and humility.
There are times when actions speak louder than words and results speak
louder than plans. After resolving many of the challenges that we faced, we are now
refocused on our path to deliver a long-term, sustainable and profitable business model.
Our resilient and committed team will deliver on our mission to building for India. The
focus on financial inclusion and digitizing the informal economy will bring long-term
benefits to both the company and the country.
For me personally, this year has been centered on our core business,
instilling a compliance-first approach in every team member, and striving to become a
consistently free cash generating company. The Paytm team has identified significant
savings through the use of AI and has expanded in areas where we see the future of
technology heading.
I believe that AI will be as instrumental in advancing India as the
mobile/smartphone revolution has been. Your company has always been a technology first
company and will not only leverage AI-led cost savings but also build AI-first products
that can help small merchants and micro-businesses harness the power of technology
previously available only to large enterprises.
Helping and serving our nation is a privilege we do not take lightly.
The entire Paytm team remains committed to delivering fully compliant, fully made-in-India
innovations that bring millions of Indians the advantages of the formal financial system.
Thank you for your support and guidance.
Best,
Vijay Shekhar Sharma