Paytm e-commerce losses down to Rs 1,171 crore in FY19
today Nov 1, 2019
Paytm’s e-commerce business managed to narrow its losses to Rs 1,172 crore ($164.8 million) on the back of strong sales for the financial year 2018-19. The company had reported losses of Rs 1,788 crore in the previous financial year.
Paytm Mall’s revenue witnessed a 25 percent surge to Rs 968 crore in 2018-19 as against Rs 775 crore in the last financial year.
Paytm will continue to invest in its e-commerce business in the coming months with a focus on building out online-to-offline business channels.
"Paytm Mall is focusing on building out O2O business channels whilst continuing the online business at contribution margin positive levels. The goal is to be Ebitda (earnings before interest, tax, depreciation, and amortisation) neutral by Q2-2020 and profitable by Q1-2021," Paytm Mall director Rudra Dalmia told news agency PTI.
India’s e-commerce industry is dominated by U.S.-based Amazon and Walmart-owned Flipkart, with Paytm holding a distant third place.
Paytm expects its e-commerce business to reach break-even in the coming year and could pursue a stock exchange listing after 2021.
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