New Delhi: One97 Communications, the parent entity which operates brand Paytm, expects that its artificial intelligence (AI)-led efficiency is expected to drive operating leverage, with annualised savings of Rs 400 - Rs 500 crore expected, it said as part of its annual results on Wednesday.
The company has been at the forefront of leveraging AI to streamline its business processes, optimise risk management, and improve customer service. By incorporating AI-driven solutions, the company has been able to automate various functions, reduce operational costs, and enhance overall productivity. These initiatives are set to strengthen Paytm’s financial position and drive growth, yielding tangible results in the coming quarters.
In a letter to shareholders, founder & CEO Vijay Shekhar Sharma highlighted the company’s progress, emphasising the pivotal role of AI in driving these achievements. “Led by capabilities of AI and focussing on core business, we are also working on bringing in significant cost efficiencies including leaner organisation structure,” Sharma added.
He further mentioned, “Our ongoing experiments and learnings in AI promise to revolutionise customer and merchant care for the financial industry, while also unlocking new avenues for revenue generation and cost savings.”
The fiscal year 2024 has been a landmark year for Paytm, marking significant achievements. For the first time since its IPO, the company achieved full-year profitability, recording EBITDA before ESOP of Rs 559 crore.
In FY24, Paytm posted a 25 per cent year-on-year increase in revenue from operations, totaling Rs 9,978 crore, driven by Gross Merchandise Value (GMV) growth, robust device additions, and increased momentum in the financial services distribution business. The user engagement on the platform continues to grow with average Monthly Transacting Users (MTU) for Q4FY24 increasing by 7 per cent YoY to 9.6 crore, indicating the platform’s expanding reach and popularity among consumers.
Additionally, its Gross Merchandise Value (GMV) increased 39 per cent YoY at Rs 18.3 lakh crore in FY24. With a focus on creating additional payment monetisation, the company’s subscription revenues continue to grow with 1.07 crore merchants paying for device subscriptions as of March 2024, increasing by 58 per cent YoY from 68 Lakh as of March 2023.
In FY24, the company launched two new Made-in-India soundboxes, which are better suited to Indian conditions and address the high-noise environment in India. Further, Paytm will continue to address Indian merchants’ features and pricing requirements through innovative product launches and backed by a large distribution and service
network.