Paytm plans to monetise its in-house AI tools within a year by offering them to businesses.
The company expects AI-led efficiencies to strengthen profitability and expand margins.
Highlights
- Paytm to commercialise in-house AI tools within one year.
- AI products already generating initial revenue, says CEO Vijay Shekhar Sharma.
- AI solutions to target merchant acquisition, customer engagement and collections.
- Comparable EBITDA margin improves to 8% from 1% a year ago.
- Q1 net profit jumps 79% YoY to ₹220 crore; operating revenue rises 28% to ₹2,448 crore.
- Board defers proposed bonus issue to focus on growth and profitability.
Digital payments company Paytm is preparing to turn its in-house artificial intelligence (AI) capabilities into a new business opportunity. The company plans to start selling AI-powered tools to merchants and enterprises within the next year, Founder and CEO Vijay Shekhar Sharma said after announcing strong first-quarter earnings.
According to Sharma, some of Paytm’s AI products have already started generating revenue. The company is building AI tools for merchant acquisition, customer support, customer engagement, collections and retention. These solutions will be offered to both small businesses and large enterprises.
Paytm has also fine-tuned open-source AI models and deployed them on its own infrastructure to reduce computing, customer service and call centre costs. The AI business will become part of the company’s commerce and cloud services segment.
The company believes AI will improve operational efficiency and accelerate profitability. CFO Madhur Deora said revenue is growing much faster than indirect expenses, increasing confidence in achieving its medium-term EBITDA margin target of 15-20% earlier than expected. Comparable EBITDA margin, excluding government incentives, improved to 8% from 1% a year ago.
For the June quarter, Paytm reported a 79% year-on-year jump in net profit to ₹220 crore, while operating revenue increased 28% to ₹2,448 crore. The company’s board also decided to defer its proposed maiden bonus issue, saying it will prioritise long-term growth and profitability.
