The billionaire founder of Paytm faces a critical test of investor confidence on Friday when shareholders will decide whether they want him as a fintech pioneer who has made the worst start in Indian history.
Vijay Shekhar Sharma’s role as Chief Executive Officer is one of the issues that are to be voted on at the company’s Annual General Meeting around this afternoon. A proxy advisory firm last week recommended that shareholders replace the founder as CEO, citing concerns about his ability to reverse losses at the payments provider.
Paytm, the poster boy of India’s tech startups, has lost over 60% of its value since its high-profile initial public offering in November as it struggled to convince investors about its earning potential. In an interview last month, 44-year-old Sharma said Paytm is set to become India’s first internet company to hit $1 billion in annual revenue and promised a shift from growth to profitability.
Institutional Investor Advisory Services India Ltd last week said shareholders should vote against Sharma’s reappointment and the board should bring in a professional in the role. The company said that before the listing, Sharma had publicly spoken about the company turning profitable on several occasions, but so far this has not happened even at the operational level.
Paytm, listed on the exchanges as One97 Communications Limited, counts Antfin (Netherlands) Holding BV, SoftBank Group Corp and the Canada Pension Plan Investment Board as its top shareholders. Of the dozen analysts covering the firm, six have a buy rating, while three each have a hold and sell advice on the stock.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.
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