- The parent company of payments giant Paytm, One97 Communications Ltd. has tripled its losses in this year which ended on March 31st as it focused more on building its brand and expanding the business.
- The total revenue of the Noida-based company rose around 8.2 percent to Rs. 3,579.67 crore in Financial Year 19 from Rs. 3,309.61 crore a year ago. Although its expenses doubled to Rs. 7,730.14 crore in the year ended 31 March from Rs. 4,864.53 crore in the previous year.
The parent company of payments giant Paytm, One97 Communications Ltd. has tripled its losses in this year which ended on March 31st as it focused more on building its brand and expanding the business.
When calculated on a consolidated basis, the company’s loss increased to Rs. 4,217 crore in the year ended 31 March from Rs. 1,604.34 crore in the year-ago period, as per the annual report of the organization.
The total revenue of the Noida-based company rose around 8.2 percent to Rs. 3,579.67 crore in Financial Year 19 from Rs. 3,309.61 crore a year ago. Although its expenses doubled to Rs. 7,730.14 crore in the year ended 31 March from Rs. 4,864.53 crore in the previous year.
The company in its annual report that they have incurred huge capital expenditure in creating a brand and establishing its business activity. The company also mentioned that it spent a considerable amount on various capital and operational expenditures which resulted in the losses during the financial year.
In the reporting company also is focused mainly on making its stronghold in various business segments like payments bank, insurance, and insurance broking, travel ticketing, hotel, and mobile wallet services, among others, which it believes “would record much better turnover in coming years”.
Vijay Shekhar Sharma- Founder of Paytm.
Source- Wikipedia
The company also said that with the help of streamlined organizational design, the consumer confidence and the business is expected to improve in the coming years as the company intends to grow its businesses. It believes that improving consumer sentiment and increased consumer spending through online platforms will enable the growth momentum to pick up.
“The management continues to be cautiously optimistic towards the external economic environment and expects consumer demand to become more consistent and robust in the ensuing fiscal years. Further, various policy decisions taken would act as a growth channel for the company which would contribute to increased revenues and higher margins.”
Founder and CEO of Paytm, Vijay Shekhar Sharma last month said that Paytm’s valuation has jumped 25 percent to $15 billion in the latest investment round that saw several employees cash out their shares worth $150 million.
