One97 Communications, which owns the Paytm brand, sees ample opportunities to roll out AI-first offerings and will be at the forefront of Artificial General Intelligence (AGI) revolution, its Founder CEO Vijay Shekhar Sharma has said.
Sharma said that the digital payments firm aims to become “free cash flow positive” in the near future. This remark is significant as Paytm has posted a operating profit (EBIDTA before ESOP cost) for two straight quarters.
“I see AGI as something like smartphones 10 years back – very ripe for innovation and very potent to become part of everyday life at scale”, Sharma said in a letter to shareholders on Sunday, adding that the company’s technology teams have started to see very encouraging results already.
“I believe that in 2023, with advent of early-stage AGI we will see more opportunities to bring efficiencies in business and AI-first offerings”.
In the just concluded fourth quarter, Paytm reported a 51 per cent jump in revenues from operations at ₹2,334 crore while its operating profit was at ₹224 crore, including the full year UPI incentive recorded during the quarter.
“I am very happy to announce our second quarter of EBITDA (before ESOP cost) profitability. Our next milestone is to make Paytm free cashflow positive in the near future. This has been possible by disciplined resource allocation and focusing on what has become our core revenue and growth driver – payments and financial services distribution business”, Sharma said in the shareholder letter.
“Our focus on quality revenues, has led to more rupee to bottom line and our incremental business continues to generate better margins.
As a responsible payments technology company, we continue to build our business on foundation of strong adherence to compliance, operations risk and regulatory framework”.
Noting that decision to use in-house built technology for risk management and controls has resulted in a significant competitive advantage for the company, Sharma said that Paytm will continue to invest in this area as a key focus area.
In 2022-23, Paytm’s revenues grew 61 per cent year-on-year to ₹7,990 crore, becoming India’s highest earning new-age company. Paytm is on track to achieve its vision to bring 10 crore merchants and 50 crore as payment users in the near future.