 "Vijay, Vijay Shekhar, Vijay Shekhar Sharma")
Vijay Shekhar Sharma.(Photo: Reuters)
Paytm’s founder and chief executive officer (CEO) Vijay Shekhar Sharma said on Thursday that the digital payments company will focus on its core business of payments and cross-selling financial services as it aims to achieve profitability soon.
“With a commitment to the core payments business, we aim to deliver PAT profitability soon,” Sharma said. He also highlighted that the company will prioritise compliance and ensure that every regulation is followed in both letter and spirit.
Speaking at the company’s annual general meeting, Sharma said, “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 reiterated that Paytm will apply to the Reserve Bank of India (RBI) for a payments aggregator licence in due course. The company recently secured foreign direct investment (FDI) approval from the Indian government.
Sharma also highlighted that the team at Paytm is already utilising artificial intelligence (AI) across all areas—technology, product, 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.
He underscored that Paytm aims to reach 100 million merchants across the country. Currently, it is servicing 40 million merchants. “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.
In the first quarter (Q1), Paytm reported losses of Rs 839 crore, attributed to the continued impact of restrictions on Paytm Payments Bank Ltd. The loss for the Noida-based fintech company was due to a contraction in revenue from payments and financial services businesses. The company’s total income declined 33.5 per cent year-on-year (Y-o-Y) to Rs 1,639.1 crore in Q1FY25.
First Published: Sep 12 2024 | 11:24 AM IST
