Paytm reports even bigger quarterly loss, aims to reach profitability in 2023
Paytm quarterly loss widens 70%. Source: unsplash.com
India’s leading digital payments brand Paytm announced its quarterly results for Q1 FY2023. Its financial loss widened by almost 70% due to higher operational costs.
Namely, the loss in the April-June period surged to 6.44 billion rupees ($81 million) from 3.8 billion rupees a year earlier. Although the company’s revenue rose 89% to 16.8 billion rupees, its total costs also jumped 85% to 24.2 billion rupees.
Besides rising costs, Paytm’s performance was probably hindered by intensifying competition with tech giants. For instance, Alphabet Inc provides a similar solution – Google Pay, Amazon offers Amazon Pay and Walmart has its own payment solution PhonePe.
Tracking its poor performance, the company’s shares have also gone down over 50% since its mega $2.5 billion IPO in November.
Nevertheless, Paytm management reiterated the company’s intention to hit operational profitability by September 2023.
The ray of hope comes from Paytm’s loan-distribution business. It has scaled up quickly in the past 12 months, with the number of loans growing to 8.5 million – a 492% annual jump. Besides, the value of loans grew almost nine times from a year earlier to 55.54 billion rupees, according to the statement.
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