Paytm, led by billionaire founder-CEO Vijay Shekhar Sharma, is strategizing a significant overhaul of its online wealth management services. The company plans to expand its workforce by more than 50,000 salespeople to broaden its merchant base, aiming to achieve profitability at an accelerated pace.
Amid concerns over market performance following a decline of roughly 70% post its $2.5 billion IPO in 2021, Paytm seeks to revitalize its standing in India’s startup arena. Vijay Shekhar Sharma is leading this transformation, envisioning an enhanced suite of financial products to tap into the rising trend of online investments, especially among younger users.
The concerted effort involves augmenting its salesforce by over 60% to onboard merchants across smaller Indian cities and towns. Sharma believes this dual approach—focusing on wealth management and merchant acquisitions while leveraging AI automation for cost savings—could potentially yield operating profits within a year, surpassing prior forecasts.
“We will amplify our ability to serve India, its small merchants and businesses,” Sharma asserted, outlining ambitious goals to reach a 50 million merchant base on the Paytm platform by the year’s end. Presently, the Noida-based company boasts around 38 million merchants, with approximately 10 million availing paid services like QR codes and audio payments confirmation devices.
Having started in 2010, One 97, under Sharma’s leadership, evolved from offering mobile recharge services to becoming India’s leading payments brand. With plans to bolster its wealth management arm, Paytm aims to leverage AI to enhance its mutual fund business, catering to India’s burgeoning online investment landscape.
Sharma envisions significant opportunities in the underpenetrated insurance sector, targeting 250 million potential users among India’s 1.4 billion population for financial services. He emphasizes the company’s direction towards building a robust trading platform, incorporating investor protection and AI-driven recommendations.
Leveraging Microsoft Corp. and Google AI tools, Paytm anticipates substantial gains in efficiency, aiming to reduce employee costs by 10% to 15% through AI-driven automation. With a shift towards achieving operating profitability ahead of initial projections, Paytm aims to sustain its trajectory of generating free cash while enhancing lending despite mounting competition.
“This year showcased Paytm’s viable commercial model,” Sharma remarked, foreseeing a subsequent phase focusing on shareholder returns. As the company progresses, Sharma remains committed to steering Paytm towards a mature stage of sustained growth and returns.
