Indian digital payments firm Paytm said on Wednesday that it expects to hit EBITDA breakeven in the next 1.5 years.
The announcement sent shares of the company up 6% in afternoon trade on Wednesday, bringing some respite to investors who had witnessed the company’s market cap erode by more than half since its listing in November last year.
“We are encouraged by our business momentum, scale of monetisation, and operating leverage. We expect this to continue, and I believe we should be operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) breakeven in the next six quarters,” founder Vijay Shekhar Sharma said in a letter to shareholders.
While the much-hyped, One97 Communication-owned Paytm’s IPO raised a record $2.5 billion, its shares plummeted 27% on debut and have lost more than 70% from the Rs2,150 IPO price. Sharma has since been grappling to regain investor trust as his company is also entangled in a regulatory audit of its data management systems.
