One 97 Communications Ltd Management Discussions

Macroeconomic overview

India is undergoing a rapid and transformative digital revolution, profoundly impacting economic growth, employment, consumer welfare, and living standards. The country leads in real-time payments volume accounting for 48.5% of global volumes in 2024^{(1) 2 3}. Looking ahead, Indias digital economy is projected to contribute one-fifth of the national income by 2029-30 with its digital ecosystem anticipated to surpass the share of agriculture and manufacturing?. Indias resilient economic outlook, supported by real GDP growth of 6.5% in FY 2024-25 and RBIs projected 6.5% expansion in FY 2025-26 ⁽³⁾, reinforces a robust foundation for sustained domestic consumption. Combined with accelerating digital adoption, these factors are expected to further scale consumption demand across the economy.

The rapid digital transformation is driving greater financial inclusion and operational efficiency, supported by rising disposable incomes and a growing middle class.This shift is fundamentally transforming Indias consumption landscape, with the middle class projected to expand to 38% of the population by 2031, up from 31% today, supporting long-term consumption momentum. This expansion of the middle and high-income segments is projected to drive a substantial increase in consumer spending, rising from $1.9 trillion in 2021 to nearly $5.2 trillion by 2031^{(4) 5}.

Artificial Intelligence (AI) is identified as a frontier technology, a lead enabler for future growth, and is poised to play a crucial role in Indias economic transformation. AI is expected to significantly impact Indias digital growth and contribution to GDP. AI is projected to increase productivity by 2.6% by 2030 in the organized sector, impacting 38 million employees, and an additional 2.8% in the unorganized sector?. Paytm is integrating AI throughout its business and operations to boost efficiency, lower expenses, improve productivity, and create novel offerings. This is facilitated by Indias robust AI landscape, characterized by significant AI skill penetration and talent development, empowering its workforce to spearhead AI adoption.

Industry overview and Outlook

With a FinTech adoption rate of 87% well above the global average of 64%⁽⁶⁾, India leads the world in digital financial services and is now the third-largest FinTech market, home to over 10,000 registered FinTech firms⁽⁷⁾.

The FinTech industry is transitioning from disruption to collaborative transformation, increasingly working alongside traditional financial institutions through technology-driven solutions such as API integrations, digital lending platforms, and co-branded financial products. FinTechs currently contribute ~$20 billion (5% of BFSI sector revenue) in FY23, highlighting significant untapped potential across verticals, with revenues projected to scale to $200 billion (~20% share) by 2030⁽⁸⁾.

This growth will be driven by rapid expansion across key sectors. The digital lending book size is expected to grow 6.6x from $45 billion in 2024 to $300 billion by 2030, while WealthTech assets under management (AUM) are forecasted to surge from $35 billion to $237 billion a similar 6.6x increase. Meanwhile, InsurTech gross written premium (GWP) is anticipated to rise fourfold from $4 billion to $15 billion over the same period?.

Our Business Model

Our core strategy at Paytm centers on a payment-led approach, utilizing our extensive and AI-powered omni-channel payment platform to acquire and engage users. This robust ecosystem then enables the distribution of higher-margin financial and marketing services.

1 ACI Worldwide, 2024

2 Ministry of Electronics & IT

3 RBI June 2025 Monetary Policy Update

4 People Research on Indias Consumer Economy report "The Rise of Indias Middle Class"

5 EY report "How much productivity can GenAI unlock in India?"

6 ACCA Fintech as a catalyst for growth: Lessons from India

7 Ministry of Finance

8 JM Financials and Beams Fintech Fund Report

Our payment services continue to be the cornerstone of our business, acting as a significant acquisition engine for both consumers and merchants. We enable merchants to accept a variety of payment options through our offerings, including QR codes, Soundbox devices, All-in-One POS (EDC terminals), and online payment gateways, catering to diverse payment needs with industry-leading success rates. We are positioned as Indias Full Stack Merchants Payments Leader for Enterprises and MSMEs, primarily focusing on a full-stack payment gateway model where we aggregate instruments, negotiate rates, provide cutting-edge hardware and technology, and earn payment processing margins in addition to subscription fees. We have successfully deepened market penetration, including in tier-2 and tier-3 cities, leveraging our technology investments and the largest fleet on the street.

The large size of our ecosystem allows us to distribute high-margin financial services, such as merchant loans, personal loans, equity broking, and insurance, to our consumers and merchants. Our merchant loan distribution, in particular, offers significant profitability, providing the financial ability to continue investing in the merchant ecosystem. Furthermore, we offer high-margin Marketing Services, including advertising, travel ticketing, and deals and gift vouchers, empowering merchants to grow their business and enhancing monetization through our app traffic and marketing services offerings.

AI is at the heart of our operations, driving operating leverage and fostering innovation across our product and service journeys. Our in-house AI platforms, like Paytm ARMS (merchant lifecycle insights platform) and Periscope (fraud and risk detection system), automate key processes such as merchant onboarding, fraud detection, segmentation, pricing optimization, and personalized retention. This creates a high-retention flywheel and lifetime merchant value that is unmatched by competitors. We are continuously optimizing our workflow to unlock incremental platform leverage, enhancing cross-sell opportunities, improving our marketing stack, and providing insights for merchant collections. This strategic emphasis on AI allows us to deliver superior products faster, resulting in elevated customer experience and fueling our next phase of growth.

Fiscal Year 2025 marked a successful transition to a Third-Party Application Provider (TPAP) for UPI under a multibank model, partnering with Indias largest public sector and private sector banks. Our focus remains on strengthening our undisputed leadership in merchant payments, expanding high-margin loan distribution, and embedding an AI-First approach in every external and internal product. We are also exploring opportunities for international expansion of our technology-led merchant payments and financial services distribution model.

Payment Services

Paytm is Indias Full Stack Merchants Payments Leader for Enterprises and MSMEs. We provide a comprehensive suite of payment solutions tailored to diverse business needs, from MSMEs to large retailers and online platforms, enabling seamless digital payment acceptance across various instruments to expand customer reach and streamline operations. Our offerings include:

• For MSMEs, our zero-cost QR solution has enabled over 4 Cr merchants to join the digital economy. We offer Soundbox devices which provide real-time voice payment confirmations, enhancing merchant engagement and creating a growing subscription-based revenue stream. These innovations foster merchant trust, loyalty, improved retention, and boost transaction volumes.

• For enterprise merchants, we have a leading position in offering payment platforms through our online payment gateway, as well as All-in-One POS (EDC terminals for card and QR acceptance) which supports all payment methods with industry-leading success rates. We have also pioneered and scaled products like Card Soundbox and Dynamic QR.

• We primarily focus on the full stack payment gateway model, wherein we own the merchant relationship, aggregate all major payment instruments, negotiate rates with merchant partners and acquiring banks, and provide cutting- edge hardware and technology. This model enables us to better identify and cater to specific merchant needs, improve retention, and drive superior lifetime value, outperforming traditional capex-heavy POS provider models.

Our app is designed to facilitate a wide array of consumer transactions, including the ability to scan and pay using QR codes for payments, recharges, bill payments, and money transfers. To enable these transactions, consumers can utilize a variety of instruments, such as cards, net banking, and UPI (including UPI Lite), across both online and in-store payment scenarios, leveraging QR codes and other devices. Our technology investments and strategic focus have enabled us to deepen market penetration, including in tier-2 and tier-3 cities, supported by the largest fleet on the street.

Distribution of Financial Services

In financial services, we operate as a distribution platform, partnering with financial institutions to offer a range of products, including loans, insurance, and equity broking, to both our consumer and merchant base. This segment offers significant monetization potential and contributes to our overall profitability, providing the financial ability to continue investing in the merchant ecosystem. The low penetration of financial services in India presents a substantial opportunity for our continued expansion.

Loan Distribution

We operate a technology platform that connects borrowers with lending institutions, providing infrastructure to facilitate loan transactions. This platform offers capabilities across the loan lifecycle, including origination, loan management, and collection. Financial institution partners underwrite and book loans, leveraging Paytms reach for distribution and systems for efficient collection outsourcing, thereby accessing a broad customer base. We are uniquely positioned to capitalize on the merchant loan opportunity due to our large merchant acquiring network and extensive payment device base, coupled with longstanding partnerships with financial institutions.

We offer two types of loans: (1) loans where we assist the lenders with collection, and (2) distribution-only loans where our lending partner handles the collections.

Our loan distribution model adapted to evolving market dynamics in the last fiscal year, with shifted focus on merchant loans and transitioned to a distribution-led model on personal loans with our role primarily in the origination of loans, and the lending partners handle the underwriting and collections. While the dominant model shifted to distribution-only for personal loans, a partial return to the collection model for specific cohorts of the new and repeat customers, which have shown steady asset quality trends.

The asset quality for Merchant Loans (ML) has remained strong for lenders. This strong performance has provided confidence to initiate the First Loss Default Guarantee (FLDG) model for merchant loans (later to personal loans) where Paytm provides a limited credit guarantee to lenders on distributed loans. However, in a significant development starting Q1FY 2026, our largest lending partner is doing disbursements under the non-DLG model as against the DLG model in the previous quarters. Going forward, we expect a higher share of non-DLG disbursements to continue, and accordingly, distribution of financial services revenue growth will be slower sequentially as compared to the disbursements growth since under the DLG model, there is higher revenue over the life of the loan.

Other Financial Services

We continue to invest in building our equity broking and mutual fund distribution businesses by offering a high-quality trading platform at a low and transparent cost. Paytm Money has initiated Margin Trading Facility (MTF) and is now registered as a Research Analyst to offer deeper research insights. We are also expanding the distribution of mutual funds by leveraging SIPs, gold, and other wealth products.

Marketing Services

Our Marketing Services segment is a strategic pillar focused on driving additional monetization by leveraging our large base of payment customers, including both consumers and merchants. This is a high-margin opportunity and acts as a support function to our core payment business by enabling merchants to conduct more commerce activities and engage consumers.

The primary components of our Marketing Services business include advertising, travel ticketing, credit card distribution, and deals and gift vouchers. Historically, it also included movie and events ticketing. Revenue in this segment is generated through transaction fees, subscription/volume-based fees for certain solutions, and advertising partnerships. For credit card distribution, revenue includes upfront fees on activation and a portion of interchange fees. When acting as an agent, only commission income is recognized.

Business Update and Outlook

In FY 2025, our operating revenue (including UPI incentives) stood at H6,900 Cr, Contribution profit was H3,678 Cr, with a contribution margin of 53%. EBITDA was H(1,507) Cr compared to EBITDA of H(907) Cr in FY 2024 due to the impact of disruption experienced particularly during Q1FY 2025. However, weve demonstrated consistent sequential improvement in EBITDA throughout FY 2025, driven by revenue growth, margin expansion, and cost reductions, with EBITDA reaching close to breakeven at H(88) Cr in Q4FY 2025. Further in Q1FY 2026, the Company achieved the milestone of profitability and has reported EBITDA of H72 Cr as disclosed on July 22, 2025.

The focus for the coming periods remains on strengthening the core payments business and expanding the distribution of high-margin financial and marketing services. The successful transition to the multi-bank TPAP model and the approval for onboarding new UPI users are expected to drive MTU growth and provide a foundation for scaling monetization activities. The divestment of non-core assets has strengthened the balance sheet, providing flexibility for future investments and potential capital return policies once net profitability is consistently achieved.

Gradual recovery to a sustainable and profitable revenue growth in FY 2025

Our revenue is reported under three segments: (i) Payment Services, (ii) Distribution of Financial Services, and (iii) Marketing Services

We have reported total revenue of H6,900 Cr in FY 2025, reflecting a sustained sequential recovery across the business. Payments Services continued to be the largest revenue driver, contributing H4,039 Cr and accounting for 58% of total revenues. Distribution of Financial Services reported revenues of H1,703 Cr and accounts for 25% of total revenues. Marketing Services represents 17% of total revenues at H1,158 Cr in FY 2025.

Payment Services

Our Payment Services revenue decreased 35% YoY from H6,236 Cr in FY 2024 to H4,039 Cr in FY 2025, primarily due to the disruption of PPBL products; however, the business has now recovered strongly with sequential growth.

Payments business has two margin drivers - Payments processing margin and Subscriptions

Our Payments business is driven by two primary margin contributors: Payments Processing Margin and Subscription Revenue. In payment processing, we generate revenue from facilitating various payment types, including UPI, debit and credit cards, and EMI. This revenue is captured after deducting charges incurred on such transactions. In FY 2025, our Gross Merchandise Value (GMV), representing the value of payments facilitated through our platform, amounted to approximately H18.9 Lakh Cr. The UPI incentive received in FY2025 was H70 Cr, recorded in Q4FY 2025. With 80-85% of our payments GMV now coming from UPI, the payment processing margin reflects this mix.

In addition to processing revenues, we earn significant subscription revenue from merchants utilizing our payment devices, such as Soundboxes and POS machines. This business continues to see strong adoption. As of March 2025, our cumulative merchant subscription base for devices reached 1.24 Cr, a substantial increase from 1.07 Cr as of March 2024. This sequential growth in the merchant base drives subscription revenues. We have focused on improving the economics of this business by reducing device costs, increasing refurbishment of old devices, and enhancing sales team productivity. These improvements have allowed us to pass on the benefits to our most engaged merchants, resulting in stronger retention, increased market share, and a larger loan distribution funnel, leading to overall higher merchant monetization.

Distribution of Financial Services

Distribution of Financial Services includes revenues that we make from our financial services partners or consumers of our financial services offerings, primarily loan distribution. Revenue from Distribution of Financial Services decreased 15% YoY from H2,004 Cr in FY 2024 to H1,703 Cr in FY 2025 primarily due to pause of postpaid service offerings and scale down in personal loans amidst industry-wide tightening of risk policies and a cautious phase of the credit cycle. However, based on current trends, there are early signs of recovery in the credit cycle, and we anticipate this trend to continue during the next financial year. On a like-to-like basis (excluding Postpaid revenue), Financial services revenue has grown 10% in FY 2025.

We are increasingly focusing on tracking the number of "Key Financial Services Customers" as a core metric to understand the performance and opportunity within our financial services business. This metric represents unique consumers and merchants who have availed financial services offerings through Paytms platform or its group entities and specifically includes equity broking, insurance, and credit products such as merchant and consumer loans distributed through the platform. This helps us to understand the depth of engagement and monetization per customer base acquired through payments, rather than just the volume of credit facilitated.

Marketing Services

Revenue from Marketing Services stood at H1,158 Cr in FY 2025, decreased 33% YoY from H1,738 Cr in FY 2024 primarily due to sale of movies and entertainment business in September 2024.

Our revenue streams include transaction fees charged to merchants and convenience fees to customers, typically a percentage of transaction value for services like travel, entertainment, and deals. Additionally, we generate revenue through subscription and volume-based fees for our cloud and software solutions provided to merchants. Our advertising partners also contribute to revenue based on campaign scale and type.

Contribution Profit

The Contribution Profit declined by H1,860 Cr (H3,678 Cr in FY 2025 vs H5,538 Cr in FY 2024), representing a decrease of approximately 33.6% but Contribution Margin as % of revenue continues to be above 50%.

Indirect Expenses

Indirect expenses in FY 2025 were H4,369 Cr and represent a H610 Cr (12%) YoY reduction driven by our continued focus on stringent cost discipline and optimization initiatives. Our employee cost (excluding ESOP) reduced by H651 Cr YoY (21%) to H2,473 Cr in FY 2025 from H3,124 Cr in FY 2024 surpassing our target of H400 - H500 Cr annualized people cost savings by creating a leaner organizational structure and increasing productivity. Non-sales employee costs, which include technology, operations, and support teams, saw a significant decline of 28% YoY in FY 2025, reflecting improved productivity leveraging technology. While we continue to invest in our sales team to expand our distribution network, focused efforts have led to overall employee cost efficiency.

Marketing costs reduced by H104 Cr YoY (17%) to H508 Cr in FY 2025 from H612 Cr in FY 2024 despite higher spending in Q1FY 2025 to communicate about the new partnerships. Our software, cloud and data center expenses were flat YoY at H639 Cr YoY despite a temporary increase in Q1FY 2025 due to one-time migration charges. We expect these costs to grow at a lower rate than payment volume and revenues going forward.

EBITDA

In FY 2025, EBITDA was H(1,507) Cr, compared to H(907) Cr reported in FY 2024. This decline primarily reflects the impact of regulatory and other temporary operational disruptions particularly during Q1FY 2025. However, from Q2FY 2025 onwards, the Company demonstrated a recovery trajectory marked by sequential revenue growth, stabilization and growth in key operating metrics like GMV and merchant base, and continued expansion in the financial services business driven by higher-margin products like merchant loans. This recovery culminated in EBITDA reaching close to breakeven in Q4FY 2025. Further in Q1FY 2026, the Company achieved the milestone of profitability and has reported EBITDA of H72 Cr.

PAT

Our Profit/(Loss) After Tax (PAT) excluding exceptional items decreased by H71 Cr YoY to H(1,487) Cr in FY 2025, compared to H(1,416) Cr in FY 2024 due to initial disruptions during the financial year, and has since strongly recovered and reaching close to quarterly breakeven at H(23) Cr in Q4 FY 2025. Further in Q1FY 2026, the company achieved profitability as PAT stood at H123 Cr.

Profit/(Loss) After Tax (PAT) accounting for exceptional items improved by H759 Cr YoY to H(663) Cr in FY 2025, compared to H(1,422) Cr in FY 2024. This improvement is largely attributable to gains from the sale of non-core assets, specifically the Movies, Entertainment, and PayPay SAR businesses, which generated over H2,000 Cr each and contributed to a higher cash balance and increased interest income during the year. Further contributing factors include the continued focus on device refurbishment and redeployment, which expanded the active device base with reduced capital expenditure and lower depreciation, and decreased ESOP expenses due to lapses and voluntarily forgone by our Founder and Chief Executive Officer, Mr. Vijay Shekhar Sharma.

Discussion on financial performance with respect to operational performance

Particulars	FY 2025	FY 2024	FY 2023	Y-o-Y A
Revenue from Operations	6,900	9,978	7,990	(31%)
Payment Services	3,879	6,128	4,844	(37%)
Distribution of Financial Services	1,703	2,004	1,540	(15%)
Marketing Services	1,158	1,738	1,520	(33%)
Other operating revenue	160	108	86	48%
Total Direct Expenses	3,222	4,440	4,090	(27%)
Contribution Profit	3,678	5,538	3,900	(34%)
Margin %	53.3%	55.5%	48.8%	(220) bps
Indirect Expenses (excluding ESOP expense)	4,368	4,979	4,076	(12%)
% of Revenue	63.3%	49.9%	51.0%	1340 bps
EBITDA (before ESOP expense)	(690)	559	(176)	nm
Margin %	(10.0%)	5.6%	(2.2%)	nm
EBITDA	(1,507)	(907)	(1,632)	nm
Margin %	(21.8%)	(9.1%)	(20.4%)	nm

Details of Key Consolidated Financial Ratios

Particulars	FY 2025	FY 2024	FY 2023	Y-o-Y A
Debtors Turnover Ratio	4.68	6.91	7.99	32%
Current Ratio	2.76	3.46	3.10	20%
Debt-Equity Ratio	0.01	0.01	0.02	0%
Operating Profit Margin (%)	(31.6%)	(16.5%)	(26.5%)	92%
Net Profit Margin (%)	(9.6%)	(14.3%)	(22.2%)	(33%)
Return on Equity Ratio (%)	(4.7%)	(10.8%)	(13.1%)	(56%)

Drivers for Growth and Opportunities

Continue to Lead Indias Enterprise and MSME Merchants: Paytm aims to scale its leadership across merchant segments by deepening the acceptance of its first-to-market payment innovations such as QR, Soundbox, All-in-One POS card machines, and MDR-bearing instruments.

Expanding distribution of credit: We plan to grow our high-margin loan distribution revenue by increasing the number of lending partners, introducing and scaling new products, and further enhancing collections performance through the use of AI.

AI-First in every external and internal product: We are committed to strengthening automation, onboarding, fraud detection, and retention across all its products to drive scalable monetization and improve customer experience.

Consumer Acquisition: The strategy involves product-led innovation to achieve higher retention and market share gains, even with low marketing spends initially. This is expected to improve consumer monetization, particularly from personal loans, advertising, and equity broking, with a portion of this improved monetization potentially reinvested into marketing to further drive Monthly Transacting User (MTU) growth.

International Expansion: For additional long-term growth, we are exploring opportunities in select international geographies, expecting to see results from these ventures after 3 years, leveraging its technology-led merchant payments and financial services distribution model.

Internal Control Systems and Risk Management Framework

In a rapidly evolving business, technical and regulatory environment coupled with dynamic consumer demands and growing competition, our risk profile is also evolving constantly. Our Company is cognizant that effective risk management is core to a sustainable business. We have therefore adopted a dynamic risk management framework that functions under the oversight of our Audit Committee and Risk Management Committee.

Anti-money laundering and Counter-terrorism Financing Risk Management: To ensure clean day-to-day operations, we have instituted comprehensive on-boarding and risk management practices, which include appropriate anti-money laundering policies and procedures.

Investments and Acquisitions Risk Management: To ensure that our investments and acquisitions are strategically complementary to our business, we have an identified team of professionals who manage our portfolio in alignment with the Companys growth plans.

Business and Operational Risks

Macroeconomic environment: We continue to monitor and adapt to any macro-economic condition that affects our customers and merchants as it could also have an impact on our business. We will continue to do all that is necessary and in our control in such scenarios.

Financial: We continue to focus on improving profitability while making disciplined investments in areas such as expanding our products and services, broadening our marketing and promotional activities to acquire and retain customers and merchants. There could be growth in expenses as we continue to expand our business operations.

Pace of technology innovation: We make significant investments to constantly improve the scale, stability and functionality of our technology. Failure to maintain best-in-class technology infrastructure could harm our business and prospects.

Cybersecurity: Our platform incorporates multiple layers of protection for business continuity and to manage cybersecurity risks and data security breaches. We use analytics and machine learning to ensure optimum automated fraud detection during transaction processing. Encrypted data transmission using security protocols and algorithms ensures confidentiality and prevents leakage of confidential customer data. Data and technology infrastructures are vulnerable to cyber attacks, as any such incident could damage our reputation and brand and substantially harm our business.

Regulatory: We are extremely focused on ensuring compliance with the statutory and regulatory framework, and are continuously strengthening our compliance processes and management depth as some of our businesses are subject to a fast evolving regulatory landscape.

Competition: We consistently invest in enhancing our platform and customer-centric services in order to maintain our leadership. Our industry is extremely competitive, and consumers and merchants have multiple options.

Litigation: We have a dedicated team to manage litigation risk and engage external consultants where necessary, thereby ensuring minimum impact of materiality. As a Company (or key management) we may be subject to legal proceedings, including ongoing litigation in tax, civil or other matters.

Material developments in Human Resources

In FY 2025, we had an average of 39,368 active on-roll employees, inclusive of all subsidiaries. Out of the 39,368 employees, 32,614 employees were engaged in sales. None of our employees are represented by a labour union. We have not experienced any work stoppages since our incorporation.

Our Employee costs (excluding ESOP expense) decreased by H651 Cr (21%) YoY to H2,473 Cr in FY 2025 from H3,124 Cr in FY 2024 driven by our continued efforts to create a leaner organization structure and increasing productivity leveraging technology while we continue to invest in our sales team to expand our distribution network.

Sustainability and Supporting our Community

We are governed by our values of serving the community, and maintaining trust while moving fast, responsibly and focusing on the underserved and unserved. Not only do we solve for our merchants receiving mobile payments via various sources, and in turn, engaging more users, but also provide seamless and safe access to micro-credit, business payment solutions and wealth management. Paytm is committed to sustainability and is dedicated to ESG. The Companys sustainability efforts include reducing its carbon footprint, promoting financial inclusion, and supporting local communities.

Mobile Payments: Paytm has played a significant role in promoting mobile payments and reducing the reliance on cash transactions. By providing a seamless and secure digital payment experience, Paytm has contributed to greater financial inclusion and transparency, reducing the environmental impact associated with the production and circulation of physical currency. Products like Soundbox devices allow better reconciliation for merchants, hence enhancing their trust in digital payments.

Financial Inclusion: Paytm has been instrumental in promoting financial inclusion by providing access to financial services to individuals who were previously unserved. Through its services, Paytm has enabled people to send, and receive money digitally, empowering them economically and reducing inequalities.

Paytms commitment to ESG principles goes beyond its business operations. The Company actively engages in social and environmental initiatives to drive positive change. It supports various social causes, including education, healthcare, and disaster relief as well as independent local bodies, by enabling online payments to their preferred non-governmental organization or any other platform.

international forums for Sustainability

We proudly represent our country on international forums working for sustainability. Since December 2017, our Founder, Vijay Shekhar Sharma, has been the United Nations Environment Programmes ("UNEP") Advocate for Clean Air, and helps drive greater environmental action and awareness to advocate for UNEPs global #BreatheLife campaign - a major initiative on air quality seeking to influence policy and citizen action for a healthy future.

Our Founder is also on the Advisory Board of the Green Digital Finance Alliance. The Alliance was set up to address the potential for digital finance and fintech-powered business innovations to reshape the financial system in ways that better align it with the needs of sustainable development.

Corporate Social Responsibility or Philanthropic Activities Education

Scholarships to Engineering students: Paytm Foundation, philanthropic arm of Paytm, has supported the scholarship of 24 students for completing their higher studies at Scaler School of Technology, Bengaluru.

Educational Kits to Anganwadi Centers in Gautam Buddha Nagar: Paytm Foundation played a significant role in National Nutritional Week 2024 by donating educational kits to Anganwadi centers in Gautam Buddha Nagar district. These kits were equipped with essential resources such as toys, child-friendly furniture, weighing machines, utensils, and other materials aimed at supporting both early learning and nutritional care for the children. The provision of such resources is important in ensuring that these centers have the necessary infrastructure to promote a healthy learning environment.

School Enhancement: As part of its commitment to community development, Paytm Foundation, through the CSR initiatives of Paytms subsidiaries has significantly contributed in improving educational infrastructure across rural India. Key initiatives include the establishment of fully equipped computer lab, donation of smart classrooms, installation of water coolers, and distribution of tablets to government schools or organisations, aiming to bridge the digital divide and foster a more conducive learning environment.

Healthcare Support

In its efforts to strengthen healthcare access, Paytm Foundation has donated ambulances in Kuppam district and installed water coolers at multiple public locations. These initiatives, executed through the CSR contributions of subsidiaries, are focused on enhancing emergency medical response and ensuring access to clean drinking water in underserved areas.

Environment

Air Quality Action Forum: As part of our ongoing commitment to environmental sustainability, Paytm Foundation, in collaboration with United Nations Environment Programme (UNEP), launched the second Phase of Air Quality Action Forum (AQAF), a strategic platform aimed at addressing the growing concerns around air pollution in India. AQAF brings together policymakers, environmental experts, civil society organizations, and local communities to create practical, scalable solutions that improve air quality and promote healthier living conditions.

Employee Engagement Program

As part of our employee engagement programs, Paytm employees contributed a total of 1,688 volunteer hours toward various community development activities. Volunteers conducted financial literacy sessions to empower underserved communities with essential money management skills. Employees also spent meaningful time with children in shelter homes, fostering emotional support and social connection. These initiatives reflect our dedication to nurturing a purpose- driven workplace and building a more inclusive, sustainable society.