In a significant move to foster innovation and support the growth of startups in India the Department for Promotion of Industry and Internal Trade (DPIIT) has signed a Memorandum of Understanding (MoU) with Paytm led by founder and CEO Vijay Shekhar Sharma. The partnership aims to provide mentorship, infrastructure support, market access, and funding opportunities to startups, particularly in the manufacturing and fintech sectors.
Key Highlights of the Partnership
- Mentorship and Guidance: Paytm will offer mentorship to startups, helping them navigate challenges and scale their operations.
- Infrastructure Support: Startups will gain access to Paytm’s infrastructure enabling them to develop and test their innovations.
- Market Access: The partnership will facilitate market access for startups helping them reach a wider audience.
- Funding Opportunities: Paytm will assist startups in securing funding to fuel their growth and expansion.
Government’s Focus on Startups
The collaboration is part of the DPIIT’s broader strategy to strengthen the Indian startup ecosystem. The department has already partnered with several corporates and established startups, including Walmart, Apna, Bhaane Group, and boAt, to support innovation and scalability.
So far, the DPIIT has recognized 1.64 lakh startups across India, reflecting the government’s commitment to fostering entrepreneurship and innovation.
Paytm’s Role in the Ecosystem
Despite facing regulatory challenges from the Reserve Bank of India (RBI) in early 2024, Paytm remains a key player in India’s fintech landscape. The company has shown resilience, narrowing its consolidated net loss by 6% to ₹208.5 crore in Q3 FY25, compared to ₹221.7 crore in the same period last year.
Paytm’s revenue from operations declined by 36% to ₹1,827.8 crore in Q3 FY25, down from ₹2,850.5 crore in Q3 FY24. However, founder and CEO Vijay Shekhar Sharma expressed confidence in the company’s ability to achieve profitability in the next quarter (Q1 FY26).
During the Q3 FY25 earnings call, Paytm CFO Madhur Deora highlighted that the company is on track to achieve adjusted EBITDA profitability within the next one or two quarters.
Impact on the Startup Ecosystem
The partnership between DPIIT and Paytm is expected to provide a significant boost to startups in the manufacturing and fintech sectors. By leveraging Paytm’s expertise and resources, startups will be better equipped to innovate, scale, and compete in the global market.
Looking Ahead
As India continues to emerge as a global hub for innovation, collaborations like this will play a crucial role in driving economic growth and creating job opportunities. Paytm’s involvement in mentoring and supporting startups underscores its commitment to fostering a vibrant entrepreneurial ecosystem in the country.
With the government’s focus on manufacturing and fintech, this partnership is poised to unlock new opportunities for startups, enabling them to contribute to India’s vision of becoming a self-reliant and innovation-driven economy.
