Parent of India’s One97 Communications Limited, Fintech Firm Paytm, said on Saturday its net loss for the three months during September rose 8.4% as spending rose. Paytm is reporting its earnings publicly for the first time
since This month’s stock market debut, reported a consolidated net loss of Rs 4.74 billion ($63.2 million) compared to Rs 4.37 billion in the same period a year ago. Revenue grew 49.7% to Rs 11.35 billion.
“We have maintained the growth momentum in our payment services business, expanding our financial services business”
We are on our way to aggressively and pre-COVID volumes for commerce and cloud services,” said Paytm’s management
Statement.
Paytm, which counts China’s Ant Group and Japan’s SoftBank Group Corp among its backers, this month raised $2.5 billion in India’s biggest IPO, but made a disappointing start on the stock exchanges last week. have stock made up for some of his initial losses But it is 17% less than its issue price.
“Paytm continues to face tough challenges in its customer acquisition engine, which will slow down its revenue growth in the core payments business,” brokerage JM Financial said in a note to clients a day ahead of Paytm’s earnings call. “We find valuations rich and the path to profitability fraught with high performance risks in the context.”
The company said transactions other than the state-backed peer-to-peer payment network, popularly known as UPI, increased its gross merchandise value by 52% over the year-ago quarter.
Paytm Competition Google and Walmart Inc.’s PhonePe in India’s digital payments market, and all these companies offer peer-to-peer payments over UPI. The company said it was “well-funded” with cash equivalents and an investable balance of Rs 110 billion, including the initial public offering.
Founder and CEO Vijay Shekhar Sharma has said that investors need time to understand the business of the company.
Founded in 2010 as a platform for adding credit to mobile phones, Paytm grew rapidly when US ride-hailing firm Uber Technologies Inc listed it as an instant payment option in India. Its use increased in 2016 when India abruptly banned high denomination currency notes, giving a boost to digital payments.
Paytm, which is headquartered on the outskirts of the capital New Delhi, provides services including merchant payments, insurance and gold sales, movie and flight ticketing, and bank deposits and remittances.
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