Paytm plans 10% staff boost in AI pivot with some roles cut

Indian fintech pioneer Paytm is set to hire about 4,000 people over the next nine months, part of a pivot aimed at expanding its merchant network and artificial intelligence-driven product offerings.

The increase would mark a roughly 10% increase in its headcount that stands at about 40,000 employees. Paytm is also laying off 1% of its staff, or about 400 people, after the current performance appraisal cycle, a company spokesperson said. The cuts follow more substantial reductions in the previous year.

The digital payments operator has been revamping its business after Indian regulators targeted its banking affiliate two years ago. Chief Executive Officer Vijay Shekhar Sharma is trying to get more of the company’s hundreds of millions of registered users to tap its service to access loans, investments and other financial products.

The hiring push, including for senior leadership roles, will continue through March 2027. Paytm, based on the outskirts of New Delhi, will recruit across teams including product, technology and AI.

“Over the last two months, we have added more than 800 people and are in the process of recruiting a further 4,000,” the company said in a statement.

Paytm has posted four straight quarters of profit, rebounding from the turmoil caused by India’s banking regulator all but shutting down its banking affiliate. The company slashed more than 4,500 jobs in the aftermath of those curbs. The Reserve Bank of India forced a formal wind-down in April by canceling the operating license of independent affiliate Paytm Payments Bank.

The banking affiliate has laid off most of its staff over the past two years, with some getting absorbed elsewhere in the fintech group. The bank will let go of its few hundred remaining staff as it shuts down.

Founded by Sharma in 2010, Paytm began by offering prepaid mobile recharges but soon pivoted into digital payments and banking. A currency note ban in late 2016 helped the company dominate India’s fintech arena.

The company, once backed by SoftBank Group Corp. and Alibaba Group Holding Ltd., made its stock market debut in 2021. Its shares have gained about 7% over the past year, but they’re still down more than 50% from their initial public offering price.