Paytm To Focus On Core Business: Sharma

In its endeavor to achieve quick profitability, Paytm will focus on its core business of payments and cross-selling financial services.

Paytm’s founder and chief executive officer (CEO) Vijay Shekhar Sharma announced this at the company’s annual general meeting today. “With a commitment to the core payments business, we aim to deliver PAT [profit after tax] profitability soon,” he said, adding that the digital payments company will prioritize compliance and ensure that every regulation is followed in both letter and spirit.

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 government.

Paytm is already utilizing artificial intelligence (AI) across the areas of technology, product, business, and operations, Sharma said. “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.”

Paytm aims to reach 100 million merchants across the country from its current 40 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.

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.