Zomato chief executive (CEO) Deepinder Goyal took to Twitter to congratulate Paytm founder Vijay Shekhar Sharma as the share price of Paytm parent One 97 Communications rallied after the company’s December quarter performance.
The message of support comes after a difficult 2023 for Paytm, with its shares falling to a yearly low of Rs 441 in November.
Deepinder Goyal mentioned that he is trying to improve Zomato’s profit margin.
Shares of Paytm jumped 7.4% yesterday, their biggest intraday gain in two months after the company reported its first quarterly operating profit as a public company.
Paytm posted third-quarter EBITDA (earnings before interest, taxes, depreciation and amortization) of $3.8 million, nine months ahead of its September 2023 target.
“This was primarily due to a higher mix of higher-margin loan revenue, improved merchant subscriptions, and lower payment processing and promotional expenses,” BofA Securities analysts said in a note.
The company’s ability to turn a profit has been in doubt since its initial public offering (IPO) in November 2021, which remains India’s largest-ever share sale.
Shares of the fintech company are down 75% since its IPO.
congratulations @vijayshekhar and @Alipay become profitable.
Sorry it’s a bit late to the party – we’re busy with our own profitability 😉
— Deepinder Goyal (@deepigoyal) February 7, 2023
While Paytm still posted a net loss for the December quarter, the net loss was almost halved due to growing demand for BNPL (buy now pay later) loans.
On Friday, Paytm reported a 41.6% increase in third-quarter revenue.
At the close, shares of Paytm rose 5.5 percent to Rs 589.30 on the NSE.
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