One 97 Communications, the parent company of India's leading digital payments platform Paytm, widened its consolidated net loss to $66.1 million in the quarter ended March, compared to a loss of $20.11 million in the same quarter last year, when it had to contend with stricter regulations.
For the full fiscal year 2024, Paytm's consolidated net loss was $170 million, compared to $213 million in FY23. The Noida-headquartered company's top line rose 25% year-on-year to $1.19 billion in FY24, although higher costs in payment processing, marketing, employee benefits and software cloud costs weighed on the bottom line.
India's central bank banned Paytm Payments Bank, a sister company of Paytm, from offering many banking services from March 15, a move that forced the Noida-headquartered company to forge new partnerships with banks for the continuity of many of its operations .
Consolidated revenue from operations fell to $272.3 million in the January-March quarter.
A major blow to Paytm during the quarter was a loss of $27.2 million due to the impairment of its investment in associate company Paytm Payments Bank.
At the end of March 31, the company had approximately $513.8 million in the bank. Shares of Paytm fell 1.69% to 345.8 Indian rupees on Wednesday, giving it a valuation of $2.64 billion. Paytm went public in 2021 with a valuation of $20 billion.
“I am happy to share that we have successfully transitioned our core payments business from PPBL to other partner banks. This move reduces risks to our business model and also opens up new long-term monetization opportunities given the strength of our platform in customer and merchant engagement,” said Paytm Founder and CEO Vijay Shekhar Sharma in the annual shareholder letter.
“It has been possible in such a short time with extensive support from the regulator, NPCI, banking partners and our dedicated teammates. Our government and regulator's continued commitment to supporting innovation and financial inclusion keeps us true to our mission and committed to our opportunities for long-term sustainable growth.”
More to follow.
