Govt Partners Paytm To Boost Growth Of Manufacturing, Fintech Startups

SUMMARY

Vijay Shekhar Sharma-led Paytm to boost innovation and accelerate the growth of manufacturing and fintech startups in the country

As per PTI’s report, the memorandum of understanding (MoU) was signed between the Department for Promotion of Industry and Internal Trade (DPIIT) and Paytm

Paytm will provide mentorship, infrastructure support, market access, and funding opportunities to startups

The Centre has reportedly signed an agreement with Vijay Shekhar Sharma-led Paytm to boost innovation and accelerate the growth of manufacturing and fintech startups in the country.

As per PTI’s report, the memorandum of understanding (MoU) was signed between the Department for Promotion of Industry and Internal Trade (DPIIT) and Paytm.

Through this partnership, Paytm will provide mentorship, infrastructure support, market access, and funding opportunities to startups, the report said, citing an official statement.

“As part of this collaboration, Paytm will provide mentorship, infrastructure support, market access, and funding opportunities to startups, helping them scale and innovate,” the report added.

The development comes at a time when the DPIIT has been scaling partnership deals with multiple corporates as well as established startups to boost Indian startup ecosystem, while stressing its focus largely in the manufacturing space.

So far, the industries department has forged deals with Walmart, Apna, Bhaane Group, boAt among others to boost startups and enable them to scale their operations.

DPIIT has recognised 1.64 startups across India, so far.

However, it is observed that Paytm has been one of the fintech players that have been strung by the consistent controversies from the Reserve Bank of India, since early 2024.

The fintech major narrowed its consolidated net loss by 6% to INR 208.5 Cr in the December quarter of Q3 FY25 from INR 221.7 Cr, a year ago, cushioned by the recovery in its digital payments business. Also, Paytm’s revenue from operations declined 36% to INR 1,827.8 Cr during the quarter under review from INR 2,850.5 Cr in Q3 FY24.

However, founder and CEO Vijay Shekhar Sharma said that the fintech company is on track to deliver profit in the next quarter (Q1 FY26) as per the management’s guidance. Furthermore, in Q3 FY25 earnings call, Paytm CFO Madhur Deora outlined that the company is expecting to turn profitable on an adjusted EBITDA basis in one or two quarters.