Paytm has turned an operational profit for the first time. On a revenue of Rs 1,470 crore, the company reported a profit of Rs 122.5 crore. This first ever truly profitable quarter will hearten public investors. Paytm was hit hard by the Reserve Bank of India shutting down Paytm Payments Bank and forcing the company to discontinue Paytm wallets in early 2024. The company has been on a steady mend since that wipeout.
Paytm announced its results for the quarter ended March 2025, showing signs of recovery. Founder Vijay Shekhar Sharma teased a potential return for Paytm wallets, saying they “may be near a breakthrough or some resolution.” This is a significant hint for shareholders following the fintech company’s decline after the RBI restrictions on Paytm Payments Bank. The company is on track for profitability, with strong growth in financial services and merchant subscriptions.
A narrative war is unfolding in India’s fintech ecosystem. On one side is Juspay, a payments orchestrator. On the other are four of the largest payment aggregators (PAs): PhonePe, Razorpay, Cashfree, and Paytm. The PAs have told merchants that their payment gateways will no longer work with Juspay’s orchestrator. Juspay is now accusing the PAs of engaging in anti-competitive tactics. The PAs are demanding neutrality and fair play. This is a big matter involving four of the largest PAs. The fight is being waged on economics that will decide the winner.
India’s fintech sector has finally been bitten by the gold bug. Fintechs are exploring gold-linked products like digital gold savings, gold loans (credit), and gold exchange-traded funds (ETFs). However, there are two problems for fintechs looking to sell gold products: regulatory hurdles and the small revenue pool. The total revenue pool for Indian fintechs from all major gold-linked products is estimated at about Rs 1,500-2,000 crore annually. The Finance Ministry is preparing a regulatory framework for digital gold, and the RBI is considering rules for gold leasing, following a crackdown on peer-to-peer lending.
The year after the Reserve Bank of India’s (RBI) action against Paytm Payments Bank started hard for the company, threatening its operational existence. However, Paytm is showing signs of recovery. In the December quarter, its revenue came in at ₹1,901 crore. The company bagged the National Payments Corporation of India’s approval for a Third-Party Application Provider (TPAP) license, marking a key regulatory milestone. CEO Vijay Shekhar Sharma has emphasized compliance.
The messaging giant is a minnow when it comes to payments. Relief from NPCI could be just the fillip it needs to finally take on leaders PhonePe and Google Pay.
