Paytm losses mount to Rs 1,490 crore, revenue quadruples to Rs 3,314 crore

By

Maverick Martins

Published
Oct 29, 2018

One97 Communications Ltd, the parent company of payments app Paytm and e-commerce firm Paytm Mall, saw its losses mount 69 percent to Rs 1,490 crore (approx $203.8 million) during the financial year ending March 31, 2018, as against Rs 879 crore it had posted in the previous fiscal.

However, Paytm is unperturbed with the losses as it is financially strong with the backing of existing investors like Alibaba and Softbank. The company has also recently raised close to $356 million from Warren Buffett’s Berkshire Hathaway at a valuation of $12 billion.
 
The company’s total revenues witnessed a steep rise at Rs 3, 314 crore as against Rs 780 crore in had reported in the financial year 2016-17, according to its latest filings with Registrar of Companies.

A large chunk of the company’s revenue came from its mobile wallet Paytm and its banking arm Paytm Payments Bank, which was launched during the 2018 fiscal.
 
Paytm also diversified its business during the fiscal year and entered several new verticals which doubled its expenses during the fiscal year to Rs 4,718 crore on the back of increased employee and finance costs.
 
The salaries to employees for the fiscal year cost the company Rs 540 crore as compared to Rs 325 crore in FY 17.
 
Paytm is focusing on customer acquisition and targeting 500 million customers from its existing 300 million customers over the next 3 years and willing to suffer losses for the same.