BackPaytm parent clocks revenue of Rs3,629 crore in FY’20, loss shrinks by 30%
The company has said that it has aggressively expanded into financial services, its biggest driver of revenues at presentIt also claims to be on the path to becoming profitable by 2022
PremiumOne97 Communications Ltd, which owns payments major Paytm, has reported revenue of Rs3,628.85 crore in 2019-20, with losses shrinking 30% to Rs2,942.36 crore compared to Rs4,217.20 crore in the year-ago. Revenue was almost flat from Rs3,579.6 crore in FY19.
Paytm cut its total expenses by 20% to Rs6,226.31 crore in 2019-20 from Rs7,730 crore in FY19. The payments major has expanded its financial services offerings, including lending, wealth management and insurance, which are the primary driver for its revenue, it said on Friday. The company seeks to become profitable by 2022.
Last November, One97 had raised $1 billion from Softbank Vision Fund, Ant Financial, T Rowe Price Associates Inc., and Discovery Capital, at a valuation of $16 billion.
“We are on the path to empowering millions of Indians with digital financial services that will play a key role in building an Atma Nirbhar Bharat. We are also investing heavily in building digital services for our merchant partners so that they can benefit from technology and financial inclusion. Our efforts have started reflecting in the strong adoption of more profitable services by our consumers and merchants," said Madhur Deora, president, Paytm.
It launched many products, including Android-based POS devices such as Paytm Soundbox, digital ledger and reconciliation product and Paytm Khata, besides bulk payments service Paytm Payouts to cater to businesses operating in tier 2 and 3 towns to expand its footprint.
Paytm Payouts has already processed Rs1,500 crore in salaries for more than 5,000 medium and large enterprises, during the lockdown, and has already sold 200,000 units of its POS device in the market, since its launch in February, this year.
The company also said that it has witnessed digital transactions grow more than 50%, on its platform year-on-year (y-o-y).
In July, One97 along with its founder Vijay Shekhar Sharma also announced the acquisition of Mumbai-based private sector general insurer Raheja QBE for Rs568 crore to fast track the launch of its insurance operations by 30 months. The acquisition allows Paytm to build and launch unique insurance products in the market.
In February 2018, Paytm incorporated Paytm Life Insurance Corporation Ltd. and Paytm General Insurance Corporation Ltd for distributing insurance products in the market.
Recently, through its wealth management arm, Paytm Money, the group also launched stock trading services for customers, with a full-scale launch expected this month.
The ongoing covid-19 crisis has provided tailwinds to sectors such as online education and gaming, but segments such as travel and entertainment continue to reel from the impact of the pandemic.
One97 has a big play in these segments with Paytm Entertainment and Travel.
“Our incremental revenue plan would be extended by a quarter. However, owing to our digital-first strategy, post the next quarter, we see on a group level, things will return to normal. We are confident that our losses on a y-o-y basis will be down, as we see revenues from other verticals pick up, despite an impact on verticals such as travel and entertainment," Sharma said in an earlier interaction with Mint.
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