Paytm’s billionaire founder faces a crucial test of investor confidence on Friday, when shareholders will decide on whether to keep him in charge of the fintech pioneer that made one of the worst debuts in Indian history.
Vijay Shekhar Sharma’s role as the chief executive officer is among the main items to be voted on at the company’s annual general meeting which will be held virtually this afternoon. Last week, a proxy advisory firm recommended shareholders to remove the founder from his position as CEO due to concerns about his ability to turn around losses at the payments provider.
Since its high-profile initial public offering in November, Paytm, the face of India’s internet companies, has lost more than 60% of its value because it has had trouble convincing investors of its earnings potential.
In a recent interview, Sharma, 44, stated that Paytm is on track to surpass $1 billion in yearly revenue, becoming India’s first online company to do so. Sharma also promised a change away from expansion toward profitability.
Institutional Investor Advisory Services India Ltd. asked shareholders last week to vote against Sharma’s reappointment and that the board should appoint a professional to the role.
Top shareholders of Paytm include Ant Group Co.’s Antfin (Netherlands) Holding BV., SoftBank Group Corp., and the Canada Pension Plan Investment Board. Paytm is listed on the stock exchanges as One 97 Communications Ltd.
