Paytm's Vijay Shekhar Sharma Bets Big on AI, Warns India Risks Falling Behind

Paytm founder and CEO Vijay Shekhar Sharma believes that the next major innovation and business growth will be drive by artificial intelligence (AI). Speaking at Global Fintech Fest 2025, he urged Indian entrepreneurs to accelerate their efforts to seize this opportunity

“I have worked in the telecom operator industry, worked in payments, now I will start working in the AI space. You aren’t working for the future if you are not working in AI. We are underestimating the power of AI and the change it will bring,” said Sharma.

He said that India is not engaging with AI at the scale it should, while noting that major deals are taking place in the Bay Area. Sharma also warned that Indian firms can be left behind in the global tech race unless they ramp up their AI investments and innovation efforts.

“What’s missing here is belief and ambition, not capability. The day we believe that we can make something, given the amount of intelligence we have and the access to risk capital today, nothing can stop us,” he said.

Sharma’s comments come amid ongoing regulatory hurdles that have weighed on Paytm’s payments and financial services operations since last year. His renewed emphasis on AI suggests the company is now eyeing fresh growth avenues while continuing efforts to steady its core business.

Paytm's Push on AI

Paytm is undergoing a strategic shift, integrating AI across its operations to streamline costs and strengthen its financial performance. On Tuesday, the company unveiled an AI-enabled soundbox designed to enhance merchant payment processing.

In the first quarter of FY26, Paytm’s EBITDA and PAT turned profitable at ₹72 crore (margin of 4%) and ₹123 crore respectively, demonstrating AI-led operating leverage, disciplined cost structure and higher other income.

The company said its cash balance stands at ₹12,872 crore, providing capital flexibility to expand merchant payments, distribution of financial services, and AI-led innovations.

It has reported a consolidated net profit of ₹123 crore in the first quarter of FY26, driven by strong lending business and putting a cap on expenses. However, a year ago, the fintech major witnessed net loss of ₹839 crore.

Its consolidated revenue from operations increased 28% to ₹1,918 crore in Q1 FY26, compared to ₹1,502 crore in the same period last year. The firm’s contribution profit stands at ₹1,151 crore, up 52% year-on-year basis.