Published
Jul 1, 2019
Download
Download the article
Print
Text size

Paytm Mall reduces monthly cash burn to Rs 40 crore amidst restructuring

Published
Jul 1, 2019

Paytm Mall has reduced its monthly cash burn to Rs 40 crore ($6 million) as it seeks to reduce its costs as part of its restructuring plan. The business has so far cut its costs by one third.

Paytm Mall is cutting costs to work towards EBITDA breakeven - Paytm Mall


The online payments business Paytm’s multi-brand e-commerce platform Paytm Mall is in the process of cutting costs with the aim of reaching breakeven in the next few years.

“More than focusing on gross merchandise value, or GMV, we are focused on increasing revenue and the levers contributing towards it,” Paytm’s CEO Vijay Shekhar Sharma told ET Bureau. “We have cut our costs by one-third."

The business is still looking to expand during the current financial year. “We will continue to invest for another year on growth milestones and the year after that we will focus on turning breakeven,” said Sharma, who aims to achieve earnings before interest, tax, depreciation, and amortisation break even in two years.

The business is also appointing new members as part of its restructuring. Last month, Paytm Mall appointed Rudra Dalmia as its executive director and he also joined the business’ board of directors. 

Sharma reported that Paytm Mall ended the 2019 financial year with a GMV total of Rs 13,000 crore. The business’ next GMV target is Rs 17,000 crore for the current financial year. 

Copyright © 2024 FashionNetwork.com All rights reserved.