NEW DELHI, Nov 26, Reuters - India's One 97 Communications Ltd, parent of Paytm, said on Saturday its net loss for the three months through September widened by 8.4% as expenses rose.
Paytm reported its earnings for the first time since listing this month and reported a net loss of 4.74 billion rupees $63.2 million compared to 4.37 billion rupees a year ago.
Paytm's management said in a statement that the company was well funded, as we have maintained the growth momentum in our payments services business, expanded our financial services business aggressively and are on our way to pre-COVID volumes for Commerce and Cloud services.
Paytm counts China's Ant Group and Japan's SoftBank Group Corp among its backers. It raised $2.5 billion in what was India's biggest initial public offering IPO this month, but made a disappointing debut on stock exchanges last week.
The stock has recouped some of its losses but is still down 17% from its issue price of 2,150 rupees.
Market analysts are questioned about the company's business model and lack of visibility. Paytm's founder and chief executive, Vijay Shekhar Sharma, said investors will need time to understand the company's business.
Paytm, founded by Sharma in 2010, grew quickly after U.S. ride-hailing firm Uber Technologies Inc listed it as a quick payment option in India. Its use increased when India banned high-value notes in 2016 boosted digital payments.
The company, headquartered on the outskirts of capital New Delhi, offers services including merchant payments, insurance and gold sales, movie and flight ticketing, bank deposits and remittance.