Paytm CEO Vijay Shekhar Sharma has indicated the company will continue improving machine capabilities on its platform via AI, reducing need for direct headcount addition across teams like operations and sales. He stated there won’t be linear staffing increase in sync with business expansion going forward.
This aligns with Paytm recently laying off over 1000 employees after relying more on internally-built AI tools to drive operational optimization and efficiency gains. The company will also moderate field sales team expansion for now.
Conservative Approach For Some Lending
In the latest quarter, Paytm curtailed higher-risk postpaid loans, contributing to a 38% jump in consolidated revenue alongside narrowing losses. Total loan distribution values dropped QoQ as postpaid loans fell 17%, partially reflecting the strategy.
Paytm will remain conservative on postpaid credit even as other lending performs well. As postpaid business has marginal bottomline impact, revenue momentum continues strong. GMV loss gets offset by high-ticket personalized loans.
Focus on UPI Credit, Wealth and Insurance
CEO Sharma outlined taping major cross-selling potential in areas like Credit on UPI, wealth management and insurance verticals. The early insurance results have exceeded expectations to likely become a key metric.
Paytm has big ambitions around its relaunched personal loans product while targeting business loans too. With prudent underwriting, it aims to build a high-quality loan book leveraging insights from its mammoth consumer base.
