In its first quarter, the company's first-quarter loss was widened by almost 70% on higher costs, and reiterated that it is on track to hit operational profitability by September 2023, according to Bloomberg-Paytm, India's leading digital payments brand.
The loss in the April-June period climbed to 6.44 billion rupees $81 million from 3.8 billion rupees a year earlier, the company said late on Friday. Revenue went up 89% to 16.8 billion rupees, while total costs went up 85% to 24.2 billion rupees.
The loss of Paytm was probably influenced by increasing competition with the likes of Amazon.com Inc. s Google Pay, Amazon.com Inc. s Amazon Pay and Walmart Inc. s PhonePe, and a slew of smaller fintech startups. The company's shares have fallen more than 50% since its mega-$2.5 billion IPO fizzled in November due to concerns of a hazy path to profitability.
Paytm, backed by Japan's SoftBank Group Corp and China's Ant Group Co., said it would touch operating profitability by the quarter ending September 2023, amid continued revenue growth.
The number of loans in Paytm's loan-distributed business has gone up quickly in the past 12 months, a 492% increase, despite a low base, according to the company. The loan value grew almost nine times from a year ago to 55.54 billion rupees, according to the statement.
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