Alibaba-backed Paytm rolls out AI Cloud for India

Digital payments company Paytm has launched an AI-powered Cloud computing platform in India in partnership with Chinese technology major Alibaba, targeting developers, start-ups and enterprises looking for locally hosted digital infrastructure and business solutions.

The new Paytm AI Cloud platform brings together a range of ready-to-use applications and services designed to help businesses manage their digital operations without having to build and maintain extensive hardware and software infrastructure themselves.

According to Paytm parent One97 Communications Ltd, the platform provides Cloud computing services along with tools for workflow automation, payments, messaging and customer engagement. It also includes built-in customer relationship management (CRM) and campaign management features, allowing businesses to integrate these functions into their existing operations more easily.

A key feature highlighted by the company is local data storage. Paytm said consumer data processed through AI Cloud will be stored on servers located in India. The company said this approach is aimed at addressing concerns around data privacy and giving Indian businesses greater control over where their data is hosted.

"At Paytm, we have always ensured the highest standards of customer data privacy and security. Our customer's data is processed and stored locally in India with no access to any third party or investors," said Sujit Kumar Mishra, Vice President, Paytm.

The announcement comes against the backdrop of earlier concerns over the involvement of Alibaba in Paytm. Alibaba has a significant stake in the company, and questions had previously been raised about whether foreign investment and access to data could have implications for national security.

The issue was brought up in the Rajya Sabha in July by nominated member Narendra Jadhav. In response, One97 Communications said that Paytm does not share user data with third-party agencies, stakeholders, investors or foreign entities.

Beyond Cloud infrastructure, Paytm said the new platform will provide enterprises with affordable computing services, pre-built applications, pattern-recognition technology, pre-trained models and predictive computing capabilities. These tools could help smaller companies access technologies that would otherwise require significant investment in infrastructure and technical expertise.

Paytm is also working with Alibaba on the Cloud computing infrastructure for the platform. The company said it plans to expand the offering further and will soon introduce an enterprise-messaging solution in partnership with DingTalk, Alibaba's enterprise communication and collaboration platform.

The launch marks Paytm's move beyond digital payments into the broader enterprise technology and Cloud services market, where demand for locally hosted computing and AI-based business tools is growing.