One97 Communications, the parent firm of Paytm, saw a decline in its revenue to Rs 3,186 crore in FY21 from Rs 3,540 crore in FY20. The company was not expecting this before starting the IPO in the last quarter of 2021. But the next financial statistics will bring a smile to the Paytm management team and that is the phenomenal drop in its losses. As per the FY21 report, Paytm has recorded losses of Rs 1,701 crore compared to Rs 2,942 crore in FY20.
Paytm Losses, and Revenue Statistics
Bringing down the losses was the main objective set by Paytm before starting public offerings. And, the online payment firm has achieved that in FY21.
In its Annual filings, the most valuable Indian startup has revealed that its losses have been reduced to Rs 1701 crore in FY21. In the financial year 2019-20, the company recorded a total loss of Rs 2942 crore. These numbers will bring positive impacts on the Paytm IPO that will start in Q4 of 2021.
The startup could not get favorable results in FY2021 in terms of revenue. As per Paytm’s annual filings report, the company saw a marginal decline in its revenue to Rs 3186 crore from Rs 3540 crore in FY2020.
Due to the covid-19 lockdown, there are limited business activities in India. All business firms’ operations are badly affected by the covid emergency so the decline in revenue should not be a major concern for Paytm.
In FY2021, Paytm recorded 33% revenue from its non-payment operations. That sends a positive message to its investors about its operation strengths in other areas as well. Paytm has also acquired eleven major startups to initiate new operations. Bernstein, one of the known financial research analytics firms, has predicted that Paytm revenue will be doubled by FY2023.
Paytm IPO, Valuation and Key Take-Aways from Annual Filing
Paytm is leaving no stone unturned in creating more buzz for its much-awaited IPO. Last week, the board of One97 Communications, the parent firm of Paytm, conducted a meeting and formally approved the IPO documents. As per the decision taken in the meeting, the online payment giant will go for IPO on the occasion of Diwali in India.
As per the earlier reports, the online payment firm is planning to offer the biggest IPO in Indian history of $3 billion(approximately 21,745 crores). So far, Coal India started the biggest Indian IPO of Rs 15,475 crore in 2010. As per CNBC-TV18 reports, Paytm is targeting a valuation between $25 billion to $30 billion.
Currently, Paytm is the most valuable Indian startup with a valuation of $16 billion. As per the reports in April last week, Byju’s is in a discussion with UBS to raise $150 million to reach a valuation of $16.5 billion. Since the financial round with UBS is not yet over, so Paytm continues to be the highest valued Indian startup.
Due to the IPO news, Paytm unlisted shares saw a surge of 70% in the grey market from Rs 11000 to 18500 in a week. Grey market is an unofficial platform where share value is predicted before the IPO and different parties sign contracts based on the unofficial share value of the future.
Paytm also observed a decline in its expenses during FY2021. As per the annual report, the company recorded expenses of Rs 4,782.95 crore against Rs 6,138.23 crore in FY2020.
The startup saw a decline in its expenses due to less expenditure on marketing and promotional activities. As per the annual report, the firm posted Rs 532 crore as its expenditure for marketing during 2020-2021. While in 2019-2020 it stood at Rs 1,397 crore.
In FY21, Paytm provided more benefits to its employees. Employee expenses saw a marginal increment to Rs 1,184 crore during 2020-21 against Rs 1,119 crore in FY20.
Currently, Ant Financials that is the investment wing of Alibaba holds a maximum share of 30.31% in Paytm. SVF India Holding and Paytm CEO Vijay Shekhar Sharma hold an 18.73% and 14.97% stake in Paytm.