Paytm warns of job cuts as sales slide, revenue down 2.7% amid RBI action on payments bank arm, says report

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Paytm has announced potential job cuts and plans to trim non-core assets following its first-ever decline in sales on May 22, Bloomberg reported. This comes after a regulatory probe into the startup's financial arm Paytm Payments Bank (PPBL) by the Reserve Bank of India (RBI) significantly impacted the company's operations. The fintech pioneer, once a symbol of India’s startup success, reported a net loss of ₹550 crore in the quarter ended March 2024, while its revenue from operations in Q4FY24 dipped 2.6 percent to ₹2,267.10 crore, marking its first drop since its 2021 stock-market debut.

Shares fell by as much as 2 percent. Also Read | Paytm Results: Read full text of Vijay Shekhar Sharma’s letter to shareholders Founded by Vijay Shekhar Sharma in 2010, Paytm has faced difficulties since the central bank in January ordered its financial subsidiary to shut shop, the Bloomberg report said. This has damaged Paytm’s reputation and led to concerns that customers might switch to competitors such as Walmart Inc.’s PhonePe and GooglePay, it added.

Despite the challenges, Paytm stated it was profitable before interest, taxes, depreciation, and amortisation, excluding employee incentives. However, it warned of further revenue declines to ₹150-160 crore in the June quarter, but anticipated “meaningful improvement" thereafter. The company plans to streamline operations, reduce employee costs, and trim non-core businesses.