Paytm Expects Global Expansion Spree To Yield Results In 3 Years

Fintech major Paytm expects its international expansion “efforts” to yield results in the next three years. 

“For additional long-term growth, we are exploring opportunities in select international geographies, expecting to see results from these ventures after three years, leveraging its technology-led merchant payments and financial services distribution model,” the company said in its FY25 annual report.

Paytm founder and CEO Vijay Shekhar Sharma said that the company’s international expansion would centre on countries where “small businesses remain underserved”.

“Our international expansion will be deliberate, with a long-term view and a 1,000-day commitment to meaningful results,” he added.

The fintech major is looking to push the pedal on its global ambitions close on the heels of turning profitable in Q1 FY26. The company has been slowly stacking up the pieces for its international expansion for the past one year. 

In FY25, its subsidiary Paytm Cloud Technologies acquired a 25% stake in Brazil-based embedded finance startup Dinie. Paytm also incorporated wholly owned subsidiaries in the UAE, Singapore and Saudi Arabia to distribute its “technology-led merchant payments and financial services stack” in these countries. 

Sharma also said that the company has now set its eyes on offering insurance and other wealth solutions, “built specifically for India’s grassroots entrepreneurs”.

“Beyond payments, we see massive opportunities in cross-selling financial services… In time, we aim to expand into insurance and other wealth solutions built specifically for India’s grassroots entrepreneurs,” he said. 

The company is building “value accretive services” that will help merchants “grow and retain” their customers, Sharma said. While he did not shed any more light on what these services are, he said that these offerings would expand Paytm’s stack and unlock monetisation beyond transactions. 

Meanwhile, the company is also exploring opportunities in cross-selling financial services and sees the digital payments ecosystem in India becoming more “structurally viable” going forward.

“Consumer and merchant payments in India remain a large and growing opportunity. “The model is now becoming structurally viable with MDR (merchant discount rate) on select instruments and subscription revenues flowing across the ecosystem. These developments contribute to a sustainable business model,” he said. 

On Paytm’s AI push, the company claimed that the adoption of the emerging technology has accelerated product development, enhanced risk and fraud management and improved customer experience.

“The AI-led operating leverage has contributed to the company’s profitability, as seen in its EBITDA and PAT profitability,” the annual report said.

Notably, Paytm clocked a net profit of INR 122.5 Cr in Q1 FY26 as against a net loss of INR 840.1 Cr a year ago. Revenue from operations grew 28% to INR 1,918 Cr during the quarter under review from INR 1,502 Cr in Q1 FY25. 

Shares of the fintech major closed 0.24% higher at INR 1,055 on the BSE yesterday.