Paytm Shifts Focus to Post-Tax Profit and AI Integration

Paytm's CEO Vijay Shekhar Sharma announced the company will prioritize profit after tax over operational profit before employee stock options. The fintech company experienced increased losses and decreased revenue in Q2 2024. Sharma emphasized AI's transformative impact on various industries and committed to integrating AI in risk management and financial services.

Paytm's CEO Vijay Shekhar Sharma revealed a strategic pivot on Thursday, stating that the company will now focus on achieving profit after tax (PAT) instead of operational profit before employee stock options (ESOP).

Previously committed to positive EBITDA before ESOP cost, the fintech giant has adjusted its benchmarks following board recommendations. 'Now you will see us concentrating on PAT to signify our maturity and commitment to profitability,' Sharma stated during the AGM of Paytm-owner One97 Communications Ltd.

The announcement comes amid rising losses, with Paytm reporting a loss of Rs 840 crore in Q2 2024, up from Rs 358.4 crore in the same period the previous year. Consolidated revenue also dropped by 33.48% to Rs 1,639.1 crore.

Sharma also highlighted AI's rising influence across industries, forecasting a surge in automated cars within five years. 'India has become a leader in fintech and now has the opportunity to lead in AI technology,' he noted. Paytm aims to leverage AI for enhanced risk management and other financial services.

Additionally, Paytm CFO Madhur Deora discussed the company's extensive collaboration with local law enforcement and investigative agencies to address challenges in digital payments.

(With inputs from agencies.)