Adds share price, company statement details
BANGALURU, April 6 (Reuters) – Indian digital payments company Paytm PAYT.NS said on Wednesday it would be able to break even for a key measure of profitability by September next year, bolstering its shares, which have struggled so far due to doubts on its business model.
The company’s stock, which is down more than 70% from its IPO price of 2,150 rupees, rose 4.3% to hit a nearly three-week high of 635.4 rupees.
“We are encouraged by our business momentum, monetization scale and operating leverage. We expect this to continue, and I believe we should break even in operating earnings before interest, taxes, depreciation and amortization (EBITDA) over the next six quarters,” said founder Vijay Shekhar Sharma.
Backed by China’s Ant Group and Japan’s SoftBank Group Corp (9984.T), Paytm raised $2.5 billion in November last year in Europe’s biggest initial public offering (IPO). India, but got off to a dismal start due to widespread concerns about its lofty valuation.
Sharma also said his stock awards will vest only when the company’s market capitalization crosses the IPO level on a sustainable basis.
($1 = 75.5620 Indian rupees)
(Reporting by Nallur Sethuraman in Bengaluru and Munsif Vengattil in New Delhi; Editing by Uttaresh.V)
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