Paytm To Hire 4,000 Employees As It Doubles Down On AI And Merchant Expansion

Indian fintech major Paytm is set to hire around 4,000 employees over the next nine months as part of its strategy to strengthen its merchant network, expand artificial intelligence capabilities and accelerate growth across financial services.

The hiring drive would increase Paytm's workforce by roughly 10% from its current employee base of about 40,000 people.

At the same time, the company will reduce around 1% of its workforce, or approximately 400 employees, following the completion of its annual performance appraisal process, a company spokesperson said. The reduction follows much larger job cuts undertaken over the past year.

AI And Product Expansion

The hiring programme will continue through March 2027 and will include recruitment across product, technology, artificial intelligence and senior leadership functions.

"Over the last two months, we have added more than 800 people and are in the process of recruiting a further 4,000," the company said in a statement.

The move reflects Paytm's increasing focus on AI-led product development as well as expanding its merchant ecosystem.

The company is also seeking to deepen engagement with its large user base by offering a broader range of lending, investment and financial products.

Turnaround After Regulatory Setback

The expansion comes as Chief Executive Officer Vijay Shekhar Sharma continues efforts to rebuild the business following regulatory action against its banking affiliate.

Paytm has reported four consecutive profitable quarters after navigating disruptions caused by restrictions imposed on its banking unit by the Reserve Bank of India.

The fintech company had previously cut more than 4,500 jobs as part of restructuring efforts following the regulatory action.

The RBI later cancelled the operating licence of Paytm Payments Bank, forcing a formal wind-down of the banking business.

Banking Unit Nears Closure

Most employees of the banking affiliate have already exited over the last two years, with some being absorbed into other businesses within the Paytm group.

The remaining few hundred employees are expected to leave as the banking unit completes its shutdown process.

Founded in 2010, Paytm initially started as a mobile recharge platform before expanding into digital payments, merchant services, lending and wealth management.

The company's growth accelerated significantly following India's demonetisation drive in 2016, helping it emerge as one of the country's largest fintech platforms.

Paytm, which was previously backed by investors including SoftBank Group and Alibaba Group, went public in 2021.

Paytm shares reacted positively to the development on Monday. The stock rose as much as 2.5% during intraday trade to hit a high of ₹1,060. Despite the day's gains, Paytm shares remain under pressure in the near term, having declined more than 11% over the past month. Over the last one year, however, the stock has gained around 7%, though it continues to trade over 50% below its IPO price.