‘AI, Conversational Commerce Critical In Digital Economy’, Says Meta’s Sandhya Devanathan At Razorpay FTX ’25

*This is in partnership with Razorpay.

India’s digital commerce landscape is undergoing a massive transformation. Social platforms like Instagram and WhatsApp aren’t just limited to connecting loved ones anymore—they’re becoming powerful shopping destinations. From discovering products to making instant purchases, AI-powered conversational commerce is reshaping how people interact with brands, making shopping more seamless and personal than ever.

This evolution of digital commerce was a key focus at the recently concluded Razorpay FTX 2025, the 6th edition of the company’s flagship fintech event, where industry leaders came together to discuss how AI, fast transactions, and financial innovations are driving the next phase of digital interactions in India. The event brought together more than 70 thought-provoking speakers from organisations like NPCI, MeitY, Meta, WhatsApp, AWS, Airbnb, Google, Salesforce, Cred, Zomato, Swiggy, Yes Bank, Adani Group, Mastercard, Visa India, and GIC, among others.

Beyond insightful discussions, Razorpay also unveiled a suite of India-first innovations aimed at transforming business payments and financial operations. These included RazorpayX Corporate Cards (with Yes Bank), Razorpay Buyer Protection, Razorpay RAY Agentic-AI, and Razorpay Engage Gift Cards—solutions designed to enhance efficiency, security, and adaptability for merchants navigating the evolving digital economy.

Adding to the event’s significance, a captivating fireside chat between Sandhya Devanathan, Vice President of Meta India, and Shashank Kumar, Managing Director & Co-founder of Razorpay, delved deeper into the role of AI in conversational commerce and its growing influence on digital transactions. Their discussion underscored how AI-driven interactions are shaping consumer behavior and redefining the future of commerce.

View the full conversation here:

Sandhya Devanathan stated that quick commerce is emerging fast in not just the metros but also tier II and III cities. She highlighted how AI and conversational commerce are not just innovative technologies but critical for businesses in today’s digital economy.

Devanathan charted the growth of quick commerce, revealing that platforms like Instagram, which were earlier confined to low-ticket purchases, are witnessing a shift towards higher-ticket items too.

“What started off as groceries and personal care goods, now you’re seeing pretty much everything: iPhones, festive purchases, and high-ticket items,” Devanathan said.

She added that “Gen Z is shaping quick commerce behavior a lot, with 87% making purchase decisions based on what they see on Instagram.”

Businesses need to adapt to meet the growing need for seamless transactions. To this end, there is “an increasing interest in quick commerce” by companies, Devanathan noted.

With more than half a billion users in India, WhatsApp is enabling digital commerce to flourish in not just metros but tier II and III cities as well. In these areas, purchase decisions are driven by influencer-driven commerce.

Instagram content creators “are shaping a lot of the buying decisions in the country and it is also playing out in tier II and III cities,” Devanathan highlighted. She cited findings from a survey showing that “one-third of Instagram users had purchased an influencer-recommended product in the country.”

Razorpay’s Shashank Kumar agreed, “The real India is on WhatsApp and Instagram—this is where the next billion-dollar businesses will be built.”

WhatsApp is turning into a complete commerce ecosystem, facilitating discovery, engagement, and transactions under a single platform. 

Devanathan underlined that WhatsApp is driving commerce conversations further, which is reflected in survey results showing that “60% of respondents had used WhatsApp to make a purchasing decision.”

Businesses can reach a larger consumer base and communicate to them through WhatsApp even if a lead is generated through Instagram or Facebook. 

“WhatsApp is the first port of call for businesses—it reduces friction, enhances engagement, and makes transactions seamless,” Kumar stated.

Devanathan also shared instances about how businesses are leveraging WhatsApp. While Indigo Airlines now allows services such as buying tickets, boarding passes, and instant check-ins, on WhatsApp, HDFC Bank offers over 200 services on the platform, from banking solutions to fraud alerts and more.

When it comes to quick commerce, voice assistants and chatbots powered by AI are improving user experience, increasing conversions, and decreasing friction.

According to Kumar, “AI is the silent force behind digital transformation—whether it’s optimising ads, enhancing customer support, or enabling hyper-personalisation.”

Devanathan recalled a notable example of AI-driven transformation—the Andhra Pradesh government’s WhatsApp-based Mana Mitra. The chatbot seamlessly integrates 36 departments, providing citizens with access to 161 services—including ticket bookings, bill payments, and birth certificates—through a single conversation.

Devanathan highlighted that Meta is the only big tech company offering fully open-source AI solutions through its LLaMA family of large language models. LLaMA is enabling businesses to build scalable AI-powered tools at lower costs.

Open-source AI models are helping everyone from small and mid-sized enterprises to startups and non-profits to build AI-powered tools at lower costs, and compete with digital giants, thus democratising innovation.

Indian companies are using LLaMA to power everything from carbon capture projects to farming to legal case processing, Devanathan shared. 

The convergence of AI, social media, and commerce is not a passing fad, but rather, the way of the future. With Meta at the forefront of open-source AI, conversational commerce, and scalable digital solutions, businesses have a once-in-a-lifetime chance to develop and expand.

Kumar opined, “When I think about Meta, the family of apps that Meta has—from Facebook to WhatsApp to Instagram and now Threads—I believe if any company understands the pulse of India really well, it’s Meta. Today, after the proliferation of social media among all our lives, there’s so much happening at the intersection of social media, fintech, commerce, and AI; I think Meta is in some ways at the centre of it all.”

As India transitions to a digital-first economy, the next era of commerce will be defined by those who adopt these new tools and platforms. 

Devanathan emphasised: “AI and conversational commerce are not just innovations; they are necessities for survival in the digital economy.”