Paytm, a leading Indian financial company, is planning a major overhaul of its wealth management business to accelerate profitability. The company’s CEO, Vijay Shekhar Sharma, has revealed that the reorganization will involve hiring over 15,000 contracted merchants who will expand the company’s retail network and meet the growing demand for online investment among younger users. Sharma emphasized the importance of attracting younger users who are more comfortable using digital platforms, stating that Paytm’s money management product overhaul is specifically designed for this demographic group. Additionally, the company plans to increase the number of sales personnel to over 50,000, with a particular focus on attracting merchants from smaller communities.
By combining these initiatives with cost reduction through artificial intelligence automation, Paytm aims to achieve profitability in the coming year, surpassing previous forecasts. Sharma expressed confidence that the company is capable of serving small businesses and firms in India, predicting significant growth in the number of sellers using the Paytm platform, with a target outcome of over 50 million by the end of the year.
This tactical reorganization is Paytm’s effort in response to intense competition from rivals such as PhonePE, as well as regulatory pressure. The Reserve Bank of India recently issued instructions to lenders, including Paytm, to revise their capital requirements following a rise in delayed payments. In light of these changes, Paytm has announced a change in its credit strategy, focusing on larger loans for consumers and businesses, resulting in downgrades by major brokers, including JPMorgan, Goldman Sachs, and Citi.
Noting the growing trend of “digital-first” shopping in India, Paytm aims to capture the market of digitally-savvy millennials and Generation Z. Recent data shows that digital wallets have become the preferred payment method in 55% of retail transactions in India, highlighting the demand for seamless and convenient digital payment solutions.
Paytm’s strategic overhaul positions the company for further growth and dominance in India’s rapidly evolving financial industry.
Source: MoneyControl.com
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