Fintech investments will be used to create an AI-based software stack as Paytm looks into an India-scale AI system

22 Aug 2023 , 12:29 PM

In order to develop a software stack for artificial general intelligence, One97 Communications Limited, the company that owns the Paytm brand, is investing in artificial intelligence (AI). On Monday, August 21, India’s top payments and financial services provider—as well as the inventor of QR codes and mobile payments—filed its annual report for 2022–2023 with the stock exchanges, highlighting its plans to advance new technologies such as artificial intelligence. 

Vijay Shekhar Sharma, the CEO and founder of the business, also addressed a letter to the shareholders. Sharma mentioned Paytm, which helped popularize mobile payments in India by setting the standard with innovations like Soundbox and QR Codes.

‘In India, we can expect 500 million payment consumers and 100 million merchants not very far in the future,’ he stated. Sharma stated in his letter that Paytm’s small mobile credit, which has high credit quality and is entirely compliant with regulatory requirements, will be the company’s next contribution to India’s digital revolution after mobile payments.

Expectedly, this calls for highly developed AI and other technological skills. We have advanced AI skills in use, and I’m proud of how we’re growing. We are developing a large-scale AI system for India that would assist different financial institutions in identifying potential hazards and frauds while also shielding them from emerging risks brought on by the development of AI, the author stated.

Paytm reported a consolidated net loss of Rs 357 crore, a dramatic decrease from a loss of Rs 6,444 crore in the same time last year, when it released its April-June quarter results for fiscal 2023–24 (Q1FY24) last month. However, as compared to the Rs 168 crore recorded in the prior March quarter of fiscal 2022–23, the net loss has increased.

On the top line, operating revenue increased by 39.4% to 2,341 crores in the first quarter of the current fiscal year from Rs 1,679 crores in the corresponding period last year. For the June quarter, Paytm’s credit distribution division claimed a 167% year-over-year growth, disbursing loans of Rs 14,845 crore. One97 Communications, the parent company of Paytm, reported to the stock exchanges that the total number of loans facilitated on the payments platform increased by 51% to 1.28 crore.

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