Indian FinTech company Paytm beat analysts’ estimates and reported narrower losses in the latest quarter.
The company’s net loss for the three months through December shrank to 2.2 billion rupees (about $26.5 million), Bloomberg reported Friday (Jan. 19). Analysts had expected a loss of 2.55 billion rupees (about $31 million).
During the same period, Paytm’s sales rose 38% to 28.5 billion rupees (about $343 million), according to a Friday earnings release.
Paytm was able to achieve these results by focusing on cost control and expanding its services to small merchants, per the Bloomberg report.
“Our focus on AI-led efficiency is set to further drive operating leverage,” the post said. “In the current quarter, our indirect expenses (as a percentage of revenues) have declined to 46% from 49%” a year ago.
The company has also been actively using AI to streamline product development, shortening the cycle from weeks to days, according to the Bloomberg report.
“We are accelerating the adoption of AI as it allows us to deploy more features at a faster speed within the core tech and product functions,” the company said in its earnings release. “So far, AI has delivered more than what we expected, and we expect our AI-first approach will allow us to drive operating leverage across various functions, including business and operations.”
These moves come as Paytm faces competition from other financial service providers, including Amazon, Google, Walmart and Jio Financial Services. The entry of Jio Financial Services into the sector poses a potential threat to Paytm and could disrupt the industry, according to the Bloomberg report.
Looking ahead, Paytm aims to revamp its online wealth management and insurance services and onboard more merchants, the report said.
The company has also introduced new devices, such as card machines and payment alert speakers, which have contributed to the growth of its merchant payments business, per the report.
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