New Delhi/IBNS: Vijay Shekhar Sharma, the founder and chief executive officer (CEO) of Paytm, on Thursday (Sept. 12) said the fintech company will focus on its core business of payments and cross-selling financial services as it works to achieve "profitability soon".

“The past six months have taught us many lessons, giving us the opportunity to thoroughly examine our business processes, compliance, and the way we operate from the inside out," Sharma said at Paytm's annual general meeting (AGM).

"I can now confidently assure you that we have adopted a compliance-first approach, ensuring our business adheres to every regulation fully, both in letter and spirit,” he added.

Referring to profit after tax, the Paytm CEO said, “With a commitment to the core payments business, we aim to deliver PAT profitability soon.”

Earlier in February, the Reserve Bank of India (RBI) directed the payments bank subsidiary of Paytm to stop accepting fresh deposits in its accounts or popular wallets from March.

Vijay Shekhar Sharma said the Noida-based fintech company will apply to the central bank for a payments aggregator licence in due course.

Paytm recently secured foreign direct investment (FDI) approval from the Indian government, while the company is using artificial intelligence (AI) in its products, business and operations, according to reports.

“Some of these technologies are so advanced that they could potentially form entire businesses on their own," Sharma said. "However, we remain focused on our core payments business and cross-selling financial services."

Sharma said Paytm serves 40 million merchants and aims to reach 100 million.

“The company’s strategic initiatives include leveraging advanced technology to offer financial services like loans, insurance, and mutual funds, thus broadening its market reach and promoting financial inclusion,” the CEO added.

In the first quarter of FY25, Paytm reported a loss of Rs 839 crore as the impact of the RBI restrictions on its payments bank continued.

The loss was also due to a decline in revenue from payments and financial services businesses.

Paytm’s total income dropped 33.5 percent year-on-year (YoY) to Rs 1,639.1 crore in the quarter, as per reports.

Meanwhile, the shares of Paytm's parent company One97 Communications surged two percent in the morning session after the CEO announced the company's commitment to achieving PAT profitability during the AGM.

Paytm shares were quoting RS 681.05 on the NSE in the early trade on Thursday, which was higher by 2.2 percent compared to the previous session's closing price.