19 Dec 2016

Rishabh Tripathi

Paytm Losses Soar 312% To Rs 1,534 Crores

The Alibaba backed digital payment and E-commerce platform , Paytm has posted a net loss of 1,534 crore in the financial year ended March 2016 , a rise of 312% over the previous year according to a filing with  Registrar Of  Companies (ROC) .In FY15, the Alibaba-backed firm had reported a net loss of Rs 372 crore on a revenue of Rs 336 crore.While the company has not furnished details of its revenues for the year ended March 2016, it has instead projected a revenue of Rs 869 crore for the year in the RoC filing.
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Vijay Shekhar Sharma , founder of  One97 communications which operates the e-commerce company under the brand name Paytm, drew an annual salary of about Rs 3.1 crore in the financial year 2015-16 as compared to 2.3 crore a year before. Also Vijay Shekhar Sharma holds 21% stake in One 97 communications.

Paytm earns revenue through the mobile wallet and e-commerce business. Its payments business includes mobile recharges, money transfer, and flight, bus and railway ticketing, among others. The company also provides payment gateway services and is authorised by the Reserve Bank of India (RBI) to provide and operate a semi-closed wallet.

Paytm’s FY16 losses soar 4-fold to Rs 1,549crPaytm’s FY16 losses soar 4-fold to Rs 1,549cr - ImageThe company has neither mentioned the revenues for the fiscal ended 2016 nor it has told the reasons for the soaring losses. When contacted, a company spokesperson told TOI in an e-mailed response, “The technology sector needs front-loaded investments with a long-term vision for profitability. This year, we have invested heavily in marketing, business expansion and manpower. This will not only help us drive sustained growth over the long-term but also bring us closer to our vision of integrating half a billion Indians to the mainstream economy.”

Company is planning to become operationally profitable by 2019 according to the filing with ROC. Although going through the losses company has created two seperate entities i.e. Paytm Payments Bank and another one Paytm E-commerce and of these the wallet business is transferred to the latter one .