Paytm Founder Reflects on RBI Action: A Lesson in Responsibility

Vijay Shekhar Sharma, the founder of Paytm, reflected on the Reserve Bank of India's (RBI) action against Paytm Payments Bank. He acknowledged it as a personal emotional setback and a professional lesson in fulfilling responsibilities better.

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Earlier this year, the RBI directed Paytm Payments Bank Limited (PPBL) to halt new deposits and digital wallet activities from March. This was due to material supervisory concerns and non-compliance with regulations.

Professional Reflections

At the 7th JIIF Foundation day, Sharma candidly admitted, "At a professional level, I would say we should have done better, there are no secrets about it, we had responsibilities, we should have fulfilled much better." He emphasised that the company has learned from this experience and is now more prepared.

Sharma compared his company to a maturing daughter who faced an unexpected setback. He said, "As a founder, metaphorically speaking... my company is like my daughter... it is just as if a daughter who is a school topper has met with an accident on way to an entrance test... that is the kind of feeling which is little personal, emotional feeling."

Personal Ambitions

Discussing his ambitions, Sharma revealed his goal to build a USD 100-billion company. He wants Paytm to be globally recognised as an Indian brand. He also noted that listing a company brings more responsibility and maturity, which he values.

On a lighter note, Sharma likened taking a company public to getting married. He said, "Just like everyone should get married, it is part of life.... similarly keeping a company private, is like staying a bachelor. It is a great opportunity to be listed... ultimately it differentiates the men from the boys."

Stock Market Dynamics

When asked about the decline in One97 Communications' share price post-listing, Sharma focused on the company's fundamentals and business dynamics. He stated, "I always wondered...do we have a great, healthy company that will continue to build business, free cash and invest. That matters more... Public market matters because it is a responsibility... but public markets are beyond you, they have many more variables and limitations."

Sharma highlighted that Paytm works diligently in its business operations. He believes that over time, the stock market or public market will understand and things will resolve accordingly.

Reflecting on past challenges, Sharma mentioned his fundraising struggles between 2013 and 2015 when funds were depleting. He recalled thinking that if they failed then, no one would care. However, today it matters significantly.

Sharma concluded by addressing questions about his dreams and ambitions during his speech on Saturday. His reflections provide insight into the challenges and aspirations of leading a major financial technology company in India.