Paytm's Path to Profitability: A Strategic Shift with Global Ambitions

Fintech giant One97 Communications, owner of Paytm, narrowed its losses in Q3 2024 by reducing expenses, particularly in payment processing and employee costs. Revenue declined due to decreased earnings from various services. The company eyes overseas expansion, establishing subsidiaries in the UAE, Saudi Arabia, and Singapore.

In the third quarter ending December 2024, One97 Communications, the fintech powerhouse behind Paytm, reported a consolidated loss of Rs 208.5 crore. This was a reduction from last year's Rs 221.7 crore, primarily due to cost-cutting measures in payment processing and labor expenses.

Despite a 35.8% drop in operational revenue to Rs 1,827.8 crore, Paytm's quarterly income showed recovery trends. The decrease stemmed mainly from diminishing revenues in payment services and marketing. Looking forward, Paytm plans international expansions with subsidiaries in the UAE, Saudi Arabia, and Singapore.

The firm achieved record high GMV of Rs 5 lakh crore amidst trimmed operational losses and cost reductions, particularly in non-sales personnel. Strategies include leveraging AI for increased productivity. Additionally, Paytm increased its cash reserves by selling stake in PayPay to Softbank. Bimal Julka was appointed as a non-executive independent director.

(With inputs from agencies.)