Paytm said that it anticipates “tangible results from these initiatives in the coming quarters”, further bolstering our competitive advantage in the market….reports Asian Lite News
In order to achieve significant cost efficiencies through artificial intelligence (AI)-led capabilities, digital payments major Paytm is planning a “leaner organisation structure” and the “pruning of non-core businesses”, indicating there may be job redundancies at the company in the near future.
In key focus areas, as mentioned in the company’s stock regulatory filing, Paytm said that led by capabilities of AI and focusing on core business, “we are also working on significant cost efficiencies including leaner organisation structure”.
“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,” said the financial services provider.
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Paytm said that it anticipates “tangible results from these initiatives in the coming quarters”, further bolstering our competitive advantage in the market.
One 97 Communications Ltd, the parent company of Paytm, clocked a net loss of Rs 550 crore in the January-March period of FY24, a 3.2 times jump compared to the same period in the last fiscal year.
Paytm’s revenue was down by 20 per cent compared to the previous quarter.
Its quarterly result took a beating after the Reserve Bank of India’s (RBI) ban on some of the services of Paytm Payments Bank (PPBL).
The company posted a 3 per cent decline in its revenue for the fourth quarter of FY24 to Rs 2,267 crore.
The decline, said the company, was primarily influenced by macroeconomic challenges, competitive intensity and regulatory changes.
Despite the revenue dip, Paytm said it achieved significant progress in improving its profitability and operational efficiency.
Revenue from operations witnessed an increase of 25 per cent year-over-year (YoY), reaching Rs 9,978 crore in the full fiscal year (FY24).
This growth was primarily driven by an increase in gross merchandise value (GMV), expansion in device additions, and the expansion of financial services offerings.
Paytm’s Gross Merchandise Value (GMV) increased 39 per cent YoY at Rs 18.3 lakh crore in FY24.
As of March 2024, merchant subscriptions were 1.07 crore, increasing by 39 lakh (YoY).
Overall loss fell by Rs 354 crore YoY to Rs 1,423 crore, on the back of improved growth and increased operational profitability.
Additionally, Paytm’s earnings before interest, taxes, depreciation and amortisation (EBITDA) before employee stock ownership plans (ESOPs) surged to Rs 559 crore, said the company.
Paytm’s Payment Services for FY24 stood at Rs 6,235 crore. This growth was driven by the widespread adoption of digital payments and Paytm’s continued focus on expanding its merchant base, the company added.
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