At GFF 2025, Vijay Shekhar Sharma called out India’s underwhelming AI ambitions, urging founders to build locally and scale globally as Paytm deepens its AI play.
A Wake-Up Call From the Paytm Founder
At the Global Fintech Fest (GFF) 2025, Paytm CEO Vijay Shekhar Sharma issued a blunt warning: India risks missing the AI revolution by failing to leverage it at scale.
“We are underestimating the power of AI,” Sharma said, expressing concern that while Silicon Valley startups raise billions, Indian counterparts are falling behind not due to lack of capability—but due to a lack of belief and ambition.
“AI Sovereignty Is Like Virginity”
Sharma’s most striking analogy was around AI sovereignty, likening it to virginity—something to be protected and preserved from foreign influence.
“India should not give its AI sovereignty to the foreign world at all,” he said, adding that the country must build its own AI operating system, free from over-reliance on tech made in the West.
The statement comes amid global conversations around digital sovereignty, especially as large language models (LLMs) and foundational AI tools remain dominated by the US and China.
What’s Missing? Not Capital—But Confidence
Dispelling the belief that Indian startups suffer from a lack of patient capital, Sharma pointed out that risk capital availability has improved significantly.
“Compared to 2005 or 2015, capital inflow has increased. Now is the time for tech entrepreneurs to take the bet that we will not let our companies be controlled by another country’s AI.”
His remarks challenge both founders and policymakers to think beyond outsourcing and integration, and instead aim to build foundational AI infrastructure within India.
Paytm’s AI Push: From Buzzwords to Real Products
On the same day as Sharma’s fiery comments, Paytm launched its AI-powered Soundbox, a voice-enabled smart device built to serve India’s small and medium merchants.
Key features of the AI Soundbox:
- Supports 11 Indian languages
- Provides real-time insights into collections, payment history, and business performance
- Comes with a dual-display setup: a touchscreen for interaction and a top display for updates
- Supports QR and card payments for greater versatility
The Soundbox, built on Android, is designed as more than a payment notifier. It’s a conversational assistant, bringing AI to the point of sale in India’s informal economy.
AI-First Identity Incoming?
Sharma also hinted at a new Paytm AI brand identity coming in 2025, though details remain under wraps. The fintech major is expected to broaden its AI strategy beyond core payments, potentially into financial assistance, business insights, and customer engagement.
Already, Paytm uses AI for:
- Marketing personalisation
- Customer support automation
- Financial guidance through its tie-up with AI search engine Perplexity
These moves indicate that Paytm wants to own the AI stack within its ecosystem, from backend intelligence to customer-facing features.
Financial Health: Profit Returns to the Paytm Table
In parallel with its AI journey, Paytm posted a consolidated net profit of ₹122.5 Cr in Q1 FY26, reversing a loss of ₹840.1 Cr from the year-ago quarter.
Operational revenue surged 28% YoY to ₹1,918 Cr, a signal that its core business is stabilising amid regulatory scrutiny and investor pressure.
Why Sharma’s Warning Matters
India’s tech talent powers much of the global AI infrastructure, yet domestic AI product innovation remains limited. Sharma’s call to action is clear:
- Build Indian AI tools for Indian problems
- Preserve data and model control
- Stop relying on imported intelligence
In essence, he’s asking the Indian ecosystem to graduate from user to creator in the AI era.
