Published
Apr 21, 2020
Download
Download the article
Print
Text size

Paytm cuts costs and reduces losses as digital payments drop during lockdown

Published
Apr 21, 2020

Digital payments and e-commerce business Paytm has cut costs by between 15% and 20% over the past two months and has continued to work on reducing its losses as digital payments decrease.

Paytm’s new coronavirus insurance - Paytm- Facebook

 
Paytm is decreasing both expenditure and losses as consumer sentiment remains muted during lockdown, TNN reported. The business, which is currently valued at around $16 billion (Rs 1.2 lakh crore), has cut costs by 15% to 20% over the past two months and cut overall losses by 33% which it has been working on since last autumn. 
 
“We have been able to cut a lot of fixed costs and once this is over we will be a lean, mean and stronger machine,” Paytm’s founder and CEO Vijay Shekhar Sharma told the Times of India in an interview. 

Paytm has seen digital payments on its platform drop as has been the case with digital payments across India. Although grocery sales are up, these items often have a lower profit margin than other goods such as clothing and sales of non-essential goods have dropped significantly.
 
Paytm has launched ‘Coronavirus insurance’ which covers medical insurance and job loss security up to Rs 2 lakh and has a 100% digital claim guarantee, the business announced on Facebook. The business is also using its social media platforms to encourage its customers to sponsor a meal for those in need through the KVN Foundation’s ‘Feed My City’ initiative. 
 
 

Copyright © 2024 FashionNetwork.com All rights reserved.