Paytm Parents’ Quarterly Loss Expands to Rs 763 Crore Amid Higher Expenses

India’s One 97 Communications Ltd, the parent of fintech company Paytm, reported on Friday a larger fourth-quarter loss due to higher expenses related to payment processing, marketing and employee benefits.

The company had said in April that it was expected to be operationally profitable by September 2023, although analysts have raised concerns about its business model, with Macquarie Research saying Paytm “has too many fingers in too many pies”.

A regulatory check at her payment bank has also brought her share price down, so far this year down 57%.

The company, headquartered in Noida in the national capital region, reiterated that it was “well on track” to meet its profitability targets.

Paytm, which competes with Google and Walmart Inc’s PhonePe in India’s digital payments market, said revenue in the reported quarter jumped 89% to 15.41 billion rupees.

The company reported a net loss of 7.63 billion rupees ($ 97.97 million) for the three months ended March 30, compared to a loss of 4.44 billion rupees a year earlier.

The cost of payment processing for the company increased by 52%, and the expenditure on employee benefits increased by 148%, increasing the total expenditure by 78%.

($ 1 = 77,8266 Indian rupees)

(Reporting by Mehr Bedi and Chris Thomas in Bengaluru; Edited by Vinay Dwivedi)

(Only the headline and image of this report may have been re-edited by Business Standard staff; the rest of the content will be automatically generated from a syndicated feed.)

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