Paytm aims to lead AGI revolution and achieve free cashflow positive, says Vijay Shekhar Sharma

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Founding CEO Vijay Shekhar Sharma said One97 Communications, which owns the Paytm brand, sees great opportunities to bring AI offerings first and will be at the forefront of the Artificial General Intelligence (AGI) revolution.

Sharma said the digital payments company aims to become “free cash flow positive” in the near future. This note is important because Paytm has reported operating profit (EBIDTA before ESOP cost) for two consecutive quarters.

“I see AI as something like the smartphones of 10 years ago — very ripe for innovation and very powerful to become part of everyday life at scale,” Sharma said in a letter to shareholders on Sunday, adding that the company’s technology teams are already seeing encouraging results.

“I believe that in 2023, with AI in the early stage, we will see more opportunities for business efficiencies and AI premieres.”

Free cash flow

In the last quarter that just ended, Paytm reported a 51 per cent jump in revenue from operations at Rs 2,334 crore While its operating profit was at ₹224 crore, including UPI incentive for the full year recorded during the quarter.

“I am very pleased to announce our second quarter EBITDA (before ESOP cost) earnings. Our next milestone is to make Paytm free cash flow positive in the near future. This has been possible through disciplined resource allocation and focus on what has become our core revenue and growth engine – payments and distribution Financial services, Sharma said in a letter to shareholders.

“Our focus on quality revenue, increased rupees to our bottom line and our growing business continued to deliver better profit margins.

As a responsible payments technology company, we continue to build our business on a foundation of strong compliance, operational risk, and regulatory framework.”

Noting that the decision to use in-house technology to manage risks and controls has resulted in a significant competitive advantage for the company, Sharma said that Paytm will continue to invest in this area as a key area of ​​focus.

in 2022-23, Paytm revenue grew by 61 percent year-on-year to INR 7,990 crore, To become the highest paying new age company in India. Paytm is on its way to achieving its vision of bringing in 10 crore merchants and 50 crore paying users in the near future.