A major portion of the hiring will be for its office in the national capital region.
Set to achieve a target of 10 million orders per month in the coming period, the mobile commerce player today said it "has already made 100 new appointments in the last quarter and has plans of accelerating operations and hiring 400 more employees in this financial year".
"Campus recruitment will be done in the last quarter of this calendar year," Paytm CEO Vijay Shekhar Sharma said in a statement.
"The new talent will contribute to the overall wave of expansion that the Paytm is set to ride on," he added.
According to the company, it is hiring people for various functions including engineering, design, sales, marketing, product and business roles.
Around 300 employees will be hired for middle and senior positions, it added.
While the hiring would take place across Paytm offices in India, a major portion of the talent pool would be placed at its headquarters in the Delhi-NCR region, it said.
Paytm started its journey in 2009 by offering mobile recharge and utility bill payment services and today offers a full marketplace to consumers on its mobile applications.
Since it began operations, Paytm has scaled to over 8 million orders a month while its "mobile wallet" is used by more than 6 million users to pay for various services.