 "Vijay, Vijay Shekhar, Vijay Shekhar Sharma")
Paytm serves 40 million merchants and aims to reach 100 million | (Photo: Reuters)
Paytm will focus on its core business of payments and cross-selling financial services as it works to achieve “profitability soon”, said Vijay Shekhar Sharma, founder and chief executive officer of the fintech, on Thursday.
“The past six months have taught us many lessons, giving us the opportunity to thoroughly examine our business processes, compliance, and the way we operate from the inside out. I can now confidently assure you that we have adopted a compliance-first approach, ensuring our business adheres to every regulation fully, both in letter and spirit,” he said at Paytm’s annual general meeting.
“With a commitment to the core payments business, we aim to deliver PAT profitability soon,” Sharma said, referring to profit after tax. The Reserve Bank of India (RBI) in February ordered the payments bank subsidiary of Paytm to stop accepting fresh deposits in its accounts or popular wallets from March.
Sharma said Paytm will apply to the RBI for a payments aggregator licence in due course. The company recently secured foreign direct investment approval from the Indian government.
Paytm is using artificial intelligence in its products, business and operations. “Some of these technologies are so advanced that they could potentially form entire businesses on their own. However, we remain focused on our core payments business and cross-selling financial services,” he said.
Paytm serves 40 million merchants and aims to reach 100 million. “The company’s strategic initiatives include leveraging advanced technology to offer financial services like loans, insurance, and mutual funds, thus broadening its market reach and promoting financial inclusion,” Sharma added.
The Noida-based company reported a loss of Rs 839 crore in the first quarter of FY25, as the impact of the restrictions on payments bank continued. Loss was also attributed to a contraction in revenue from payments and financial services businesses. The company’s total income declined 33.5 per cent year-on-year to Rs 1,639.1 crore in the quarter.
First Published: Sep 12 2024 | 11:24 AM IST
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