Indian market fuels Paypal's twelve-fold jump in revenue for FY18
today Jan 3, 2019
Paypal has reported an over twelvefold increase in its India revenue for the 2018 financial year. The revenue increase also follows the US business’ decision to open an Indian domestic payments business.
According to data from the Ministry of Corporate Affairs sourced by ET Bureau, Paypal’s Indian subsidiary reported a revenue total of Rs 260 crore ($39 million) for the 2018 financial year, up from only Rs 21 crore in the 2017 financial year. The business opened its India domestic payments business during the 2018 financial year and this is what allowed for such colossal growth. India’s booming e-commerce industry, led by electronics and fashion, can also be thanked for this growth.
Despite the huge jump in revenue, Paypal reported minimal growth in net profits which totalled Rs 2 crore in the 2018 financial year up from Rs 1.4 crore the year before. Although Paypal has not made an official statement on the results, a source told the Economic Times that the reason for the gap between the increase in revenue and profits is that Paypal invested heavily in India over the course of the year in areas such as technology and workforce.
Paypal has partnered with Indian online services including Book-MyShow, MakeMyTrip, Yatra, Goibibo, FreshMenu, and Box8 for its Indian Paypal wallet service. The business has also added local modifications such as two-factor authentication to meet local regulatory requirements.
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