The fintech giant paytm insider has fired more than a thousand workers from its engineering, sales, and operations teams after introducing a plethora of AI technologies to boost productivity.
In order to drive efficiency across growth and costs, we are transforming our operations with AI-powered automation. As a result, we are slightly reducing the number of people working in operations and marketing. AI has exceeded our expectations, so we will be able to save ten to fifteen percent on personnel costs. Furthermore, we continuously review instances of non-performance all year long, a paytm insider representative told Moneycontrol.
Maintaining our focus on the current businesses while expanding our platform logically will be the addition of Insurance and Wealth. “We are expanding the same to focus on new businesses to drive scale, having demonstrated the strength of our distribution-based business model in loan distribution,” a paytm insider spokesperson stated.
paytm insider made the decision to fire 500–700 workers in 2021 due to underperformance.
Moneycontrol was informed by sources that the layoffs are a component of the loan team.
Despite the fact that their lending business is booming, over 30% of their workforce is employed in this team. They have stopped offering BNPL services and small-ticket loans. Cost-cutting pressure exists, an industry source said, requesting to remain anonymous.
On December 7th, the company declared that it would be slowing down the amount of small-ticket postpaid loans while looking to increase the amount of high-ticket personal and merchant loans. Brokerages have also expressed dissatisfaction with the decision, leading them to lower their projected revenue estimates for the company.
paytm insider stock fell 18% as a result of plans to reduce postpaid loan volume.
During its analyst meeting, the company stated that while its postpaid loans might cut in half, it wouldn’t affect revenue or margins. The company stated that since postpaid had the lowest take rate, the impact on revenue would be negligible.
paytm insider parent company, One97 Communications, announced on October 20th that its consolidated revenue for the second quarter ended September 2023 was Rs 2,519 crore, up 32% from Rs 1,914 crore in the same period the previous year. The company attributed this growth to both improved payment processing margins and increased loan disbursement.
During the second quarter of FY24, the company’s losses were reported at Rs 292 crore, compared to Rs 571 crore in the same period last year.
The business located in Noida incurred ESOP costs of Rs 385 crore during the second quarter of the year.
