Startup News Digest: Paytm Responds to SEBI Notice, PhonePe Achieves Profitability, and My Tirth India Closes Down

Paytm Clarifies on SEBI Notice

Paytm has issued a clarification regarding recent media reports about a notice from the Securities and Exchange Board of India to the company and its directors. The company stated that this is not a new development, having previously disclosed the matter in its financial results for the quarter and year ended March 31, 2024, and the quarter ended June 30, 2024.

Paytm assured stakeholders that it is in regular communication with SEBI and has been making necessary representations regarding the issue. This comes after a report emerged that SEBI has issued show-cause notices to Vijay Shekhar Sharma, Founder of One 97 Communications Ltd, and board members who served during its initial public offering in November 2021 for alleged misrepresentation of facts.

PhonePe Turns Profitable

Digital payments giant PhonePe has reported a 74% year-on-year increase in revenue, reaching ₹5,064 crore in FY24. This marks substantial growth from ₹2,914 crore reported in FY22-23. The company has achieved profitability, excluding employee stock ownership plan costs, with an Adjusted Profit After Tax (PAT) of ₹197 crore for FY24, compared to a loss of ₹738 crore in FY23.

The standalone payments business has also shown notable improvement, recording an adjusted PAT of ₹710 crore, up from a loss of ₹194 crore in the previous year.

My Tirth India Shuts Down

Spiritual tech startup My Tirth India is shutting down operations due to a funding crunch. Founder Indraneel Dasgupta indicated that the decision to close is driven by financial limitations following the unfortunate demise of the firm’s principal shareholder and mentor, Subrata Roy. The startup had raised close to $1 million from Roy, who was instrumental in its establishment. Anup Jalota is currently serving as My Tirth India’s chief mentor.