‘Paytm to be free cashflow positive’: CEO on fintech’s ‘aim’, inclusion of Artificial General Intelligence

Digital payments firm Paytm announced their Q4 results, where the company logged a 51.5% rise in fourth-quarter revenue on Friday, aided by a surge in loan growth, and posted an operating profit for a second consecutive quarter.

In a letter to shareholders, CEO Vijay Shekhar Sharma informed that Paytm aims to become 'free cashflow positive in the near future'. 

A company is declared free cash flow when it has sufficient funds to invest back into the business for growth.

"This has been possible by disciplined resource allocation and focusing on what has become our core revenue and growth driver - payments and financial services distribution business," Vijay Shekhar Sharma said in the letter to shareholders. 

Sharma also informed that Paytm aims to include and incorporate Artificial General Intelligence in 2023 itself. 

“I believe that in 2023, with advent of early-stage AGI (Artificial General Intelligence), we will see more opportunities to bring efficiencies in business and AI-first offerings. Our technology teams have started to see very encouraging results already” Sharma said.

AGI is a machine that has the ability to understand or learn any intellectual task that a human being can. 

Paytm's consolidated net loss narrowed sharply to ₹168.4 crore in the fourth quarter of FY23.

Paytm's parent, One 97 Communications Ltd (PAYT.NS), said revenue rose to 23.35 billion rupees ($285.80 million) in the three-months ending March 31, from 15.41 billion rupees a year earlier.

The advent of early-stage artificial general intelligence (AGI) in 2023 will help bring efficiencies in the business, Sharma said.

"Our technology teams have started to see very encouraging results already," he said. "I see AGI as something like smartphones 10 years back - very ripe for innovation and very potent to become part of everyday life at scale."