Paytm reports even bigger quarterly loss, aims to reach profitability in 2023
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.