The Rebirth of Paytm, 6 days ago Vijay Shekhar Sharma was reappointed as the MD and CEO of Paytm. 99.67% of people voted in his favor because they believe that he will shift his focus from growth to profitability.
Sharma, Vijay Shekhar Paytm has promised that it will be profitable by September 2024 despite high customer acquisition costs. The government is making changes every second day, and the fintech industry is getting tougher to sustain. That decreased the global competition, and India is a low-trust country, which is still a big challenge for lots of fintech companies.
Paytm has suffered a loss of over Rs. 2300 crore in the fiscal year 2022.
The Vision of Mr. Sharma regarding Paytm
“The resounding votes of almost 100 percent in favor of his reappointment reflect investor faith in the company’s leadership. It also shows that they remain confident about the company’s growth and profitability targets, “the company said. “We do not influence share price movement. “There are several factors. A company’s profitability plays a very important factor in it. “The company’s growth plays an important role in it, but these two are not the only factors for the share price,” he told shareholders.
While the stakeholders of Paytm approved the remittance of Sharma as well as the President and Group Chief Financial Officer, Madhur Deora. The billionaire founder of Paytm has faced a crucial test of investors’ confidence in Paytm. When all the investors and shareholders had to decide whether they wanted him at the rudder of a fintech pioneer, he made one of the worst debuts in Indian history.
Earlier in May 2022, OCL’s Directors of Board decided to Reappoint Mr. Sharma as Managing director. After the Interview, the Vision of Mr. Sharma was Expressed in front of the Board of directors where he said that Paytm is set to become India’s first Internet company to hit $1 Billion in annual revenue and more focused on Profitability.
In most Nifty 50 companies, the Managing Director is appointed on a non-rotational basis.
