Paytm CEO Reveals Ambitious 2024 Agenda Amidst Layoffs, Pledges Big AI Upgrades
Written by Sanjay Kumar
In response to recent layoffs at fintech giant Paytm’s parent company, One97 Communication, Paytm’s Founder and CEO, Vijay Shekhar Sharma, shared his ambitious to-do list for 2024. The layoffs, impacting hundreds of employees across various verticals, were attributed to the company’s strategic implementation of Artificial Intelligence (AI) to automate processes and streamline operations, resulting in cost-cutting measures.
Mr. Sharma’s agenda for 2024 includes a revamp of the Paytm app’s user interface, with plans to separate the home screen and Paytm Payments Bank from other entities to enhance the overall user experience and visual appeal.
A significant focus of the CEO’s vision is the expanded integration of AI into the company’s operations. Paytm aims to leverage Microsoft and Google’s AI tools, with the goal of empowering its 10,000-strong technology, product, and engineering teams.
The implementation of AI is not only anticipated to reduce costs but also enhance operational efficiency by eliminating repetitive tasks and roles within the fintech firm. By incorporating AI, Paytm aims to accelerate product development timelines from weeks to days, emphasizing the strategic importance of innovation in the highly competitive fintech landscape.
Paytm acknowledges that the induction of AI has already proven to be more impactful than initially anticipated, enabling the company to save an estimated 10-15% in employee costs. The firm emphasizes its commitment to transforming operations through AI-powered automation to drive efficiency across growth and costs.
While recent layoffs impacted operations and marketing teams, Paytm anticipates an increase in manpower, particularly in its core payment business, projecting an addition of 15,000 employees in the coming year. The company’s profitable business model and dominance in the payment’s platform position it to continue innovating for the Indian market.
Looking beyond its core business of payments, Paytm plans to expand into the realms of Insurance and Wealth. The company envisions these sectors as a logical extension of its platform, building on the success of its distribution-based business model in loan distribution.
However, the company’s recent decision to slow down small-ticket loans and focus on high-ticket personal and merchant loans has faced criticism from brokerages. This move has prompted these financial analysts to revise down their revenue estimates for Paytm, indicating potential challenges on the horizon for the fintech giant.
Despite these challenges, Paytm remains steadfast in its commitment to innovation, emphasizing its intent to drive scale in both existing and new businesses. As the company navigates through organizational changes and industry dynamics, the implementation of AI stands out as a key strategic move to stay ahead in the rapidly evolving fintech landscape.
