The Government and Paytm sign MOU to Provide Indian Companies with Capital, Market Access, and Mentorship

Nitin Konde, Varun Bhardwaj

27 Feb 2025 — 2 min read

Government and Paytm Partner to Boost Capital, Market Access for Firms

The ministry of commerce and industry said in a statement on 26 February that the Department for Promotion of Industry and Internal Trade (DPIIT) and digital payments company Paytm have inked a memorandum of understanding (MoU) to promote innovation and quicken the expansion of fintech and manufacturing startups in India. Paytm will provide businesses with market access, financial opportunities, infrastructure support, and mentorship as part of the relationship.

According to the press announcement, the partnership's goal is to assist fintech hardware entrepreneurs in developing and scaling payment and financial technology solutions by providing them with innovation assistance and mentorship. Through workshops and guidelines developed in partnership with government and industry entities, it will also offer regulatory and compliance support.

Offerings of the MoU

Through the partnership's infrastructure and market access support, businesses may take advantage of Paytm's vast merchant network to test, validate, and improve their solutions. In front of senior representatives from both organisations, DPIIT Director Sumeet Kumar Jarangal and Paytm Founder and CEO Vijay Shekhar Sharma signed the Memorandum of Understanding. This collaboration with Paytm is an important step in bolstering India's startup environment, according to DPIIT Joint Secretary Sanjiv. DPIIT wants to help entrepreneurs overcome obstacles, scale their businesses, and help India become a worldwide innovation hub by utilising Paytm's fintech infrastructure and skills.

Paytm for Startups Initiative

Paytm will introduce specific programs to assist fintech hardware manufacturers, such as Soundbox and PoS/EDC device makers, in expanding effectively as part of its Paytm for Startups effort. Mentorship programs, financial access via investor connections and incubation programs, regulatory guidance through industry-focused workshops, and recurring tracking and effect evaluations are all part of the projects.

The Paytm Foundation will fund deep-tech startups in the fields of Mobility, agritech, Web3, and Climate Technology through its CSR division. According to Vijay Shekhar Sharma, the current period is the optimal moment for startups to begin and expand under the leadership of Prime Minister Narendra Modi. Paytm is dedicated to enabling business owners by providing access to state-of-the-art technology, financial support, and mentorship. Through this partnership, the company will guarantee that startups have the resources they need to thrive from the ground up.

Financial Dynamics of Paytm

Thanks to the rebound in its digital payments sector, the fintech giant reduced its consolidated net loss from INR 221.7 Cr in the December quarter of Q3 FY25 to INR 208.5 Cr, a 6% decrease. Additionally, Paytm's operating revenue decreased 36% from INR 2,850.5 Cr in Q3 FY24 to INR 1,827.8 Cr in the reviewed quarter.

Nevertheless, Vijay Shekhar Sharma, Founder and CEO, stated that the fintech company is on course to achieve profitability in the upcoming quarter (Q1 FY26) in accordance with the management's expectations. Additionally, Paytm CFO Madhur Deora stated on the Q3 FY25 earnings call that the business anticipates becoming profitable on an adjusted EBITDA basis within a quarter or two.