Aug 22, 2024 09:25 AM IST
Vijay Shekhar Sharma said that the fintech company will focus on generating free cash flow for the rest of the year.
Paytm founder Vijay Shekhar Sharma said that the company will refocus on delivering a “long-term, sustainable and profitable business model” in a letter to shareholders. He wrote, “After resolving many of the challenges that we faced, we are now refocused on our path to deliver a long-term, sustainable and profitable business mode.”
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Highlighting that the last financial year was one of the most important learning experiences for the company, he said that the fintech company will focus on generating free cash flow for the rest of the year. This comes after the Reserve Bank of India (RBI) placed crippling restrictions on Paytm Payments Bank citing ‘persistent non-compliance’ and ‘material supervisory concerns’ in January this year.
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He noted, “In the last quarter, we encountered regulatory action on our associate entity Paytm Payments Bank Limited (PPBL), which presented significant challenges and provided us with many valuable lessons.”
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The Paytm boss said that the company would focus on artificial intelligence (AI)-led cost savings and build AI-first products to help small merchants and micro-businesses. The company has also identified significant savings through the use of AI and expanded in areas where “we see the future of technology heading”.
