Tech3 | Moneyview turns unicorn; Paytm's PAT promise; and more

One quick thing: ONDC's big million milestones 

In today’s newsletter: 

• RIP Ebidta? Paytm's PAT promise 
• Moneyview turns unicorn 
• Dhan shines, Angel One is coming for Zerodha

RIP Ebidta? Paytm's PAT promise

In a world where companies love to flaunt their Ebitda numbers, Paytm founder Vijay Shekhar Sharma isn’t buying it anymore.

Driving the news: During the company’s AGM, Sharma announced that the company will now prioritise Profit After Tax (PAT) over Ebitda before ESOP to reflect Paytm’s true financial health.   

• Sharma explained that Ebitda doesn’t fully reflect financial health due to large ESOP costs
• The change, which was advised by board members, is likely to reflect in Paytm’s future results

Ebitda, which stands for earnings before interest, taxes, depreciation, and amortisation, is often used to measure profitability.

• However, many new-age firms report “adjusted” Ebitda–excluding costs like ESOPs– sparking mixed views on its accuracy in reflecting true financial health

Focus on AI: New technologies like artificial intelligence (AI) dominated the conversation at Paytm's AGM.

• Sharma said Paytm is aiming to lead the industry with its advanced AI capabilities
• Some of its systems are already operational in Japan (PayPay), supporting risk management and fraud detection
• The founder also reiterated Paytm’s intention to reapply for the Payment Aggregator (PA) license with the RBI. 

Meanwhile, shares of One 97 Communications, Paytm's parent company, jumped 2% during early trading hours but ended the day down by 0.10%, closing at Rs 666.35 on BSE.

Dig deeper

This is a short version of the MCTech3 newsletter. Sign up here to get the full edition in your inbox every evening on weekdays.