Paytm is expanding beyond fintech by developing and selling AI software products to its large network of merchants and businesses, the company said during its Q1 FY27 earnings call. One97 Communications, Paytm's parent company, reported a 79% year-on-year increase in consolidated net profit to ₹220 crore in the June quarter, supported by growth in payments, merchant subscriptions, and financial services distribution, according to inc42.com.
During the earnings call, Paytm founder and CEO Vijay Shekhar Sharma emphasized that the company plans to offer AI solutions and services it has developed in-house to its merchant and business customers. Sharma noted that Paytm itself uses these AI products, indicating a strategy of building and testing tools internally before commercial rollout. The company aims to leverage its existing merchant network to accelerate adoption of its enterprise AI offerings.
This move marks a strategic diversification for Paytm, which has traditionally focused on payments and financial services. The Indian fintech sector is witnessing similar expansions, with companies like Groww also branching out beyond core businesses. Paytm’s AI push aligns with its first-ever full-year profit of ₹552 crore in FY26 and a 28% rise in revenue to ₹2,448 crore, highlighting its growing financial strength to support new initiatives.
Paytm’s AI ambitions come as the company reported strong quarterly results, with consolidated net profit reaching ₹220 crore in Q1 FY27. This financial momentum provides a foundation for Paytm to scale its AI product offerings to its merchant base, potentially reshaping its growth trajectory in enterprise software.