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MUMBAI: Paytm has adopted a compliance first approach and is focusing on achieving profitability, founder and CEO Vijay Shekhar Sharma said at the company’s 24th annual general meeting (AGM) on Thursday.
“We have had a lot of learnings in the past six months. Now, we are talking compliance first business…a business that take care of every regulation fully and in letter and spirit,” Sharma said.
The Noida-based fintech has come under regulatory scanner after the Reserve Bank of India (RBI) flagged persistent non-compliance at its banking unit and directed the company to wind down its payments bank in January. The RBI restrictions impacted its business with losses widening to Rs 840 crore in the June quarter on a consolidated basis from Rs 358.4 crorein the year-ago period.
“With commitment to the core payments business, we aim to deliver PAT (profit after tax) profitability soon,” Sharma told shareholders, adding that Paytm has been able to scale its payment centric business model and the market opportunity is huge.
Sharma said that artificial intelligence (AI) is the future on which payments and Paytm’s business will grow. “Our team is already utilising 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,” Sharma said.
Paytm will apply for a payment aggregator license with the RBI, Sharma added. Last month, the company had received approval from the finance ministry to invest in its payment services business. Post the grant of license by RBI, Paytm will be able to add new online merchants which was under embargo.
“We have had a lot of learnings in the past six months. Now, we are talking compliance first business…a business that take care of every regulation fully and in letter and spirit,” Sharma said.
The Noida-based fintech has come under regulatory scanner after the Reserve Bank of India (RBI) flagged persistent non-compliance at its banking unit and directed the company to wind down its payments bank in January. The RBI restrictions impacted its business with losses widening to Rs 840 crore in the June quarter on a consolidated basis from Rs 358.4 crorein the year-ago period.
“With commitment to the core payments business, we aim to deliver PAT (profit after tax) profitability soon,” Sharma told shareholders, adding that Paytm has been able to scale its payment centric business model and the market opportunity is huge.
Sharma said that artificial intelligence (AI) is the future on which payments and Paytm’s business will grow. “Our team is already utilising 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,” Sharma said.
Paytm will apply for a payment aggregator license with the RBI, Sharma added. Last month, the company had received approval from the finance ministry to invest in its payment services business. Post the grant of license by RBI, Paytm will be able to add new online merchants which was under embargo.
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