Paytm’s parent company One97 Communications losses up by 78pc at Rs 1,640 Cr in FY18
One97 Communications, the parent company of India’s financial behemoth Paytm, has reported a total loss of Rs 1640.34 crore for the year ended March 31, 2018. This is the consolidated number including One97 Communications’ subsidiaries. The losses have widened by almost 78 percent as compared to filings from last fiscal, where the company reported a total consolidated loss of Rs 899.64 crore.
Apart from this, One97 Communications’ total revenue on a consolidated basis also grew by more than 300 percent, as it clocked a total revenue of Rs 3314.80 crores in FY 18. The Noida based company had reported a total revenue of Rs 780.19 crore in FY 17.
As a part of its filings, the company stated that capital expenditure in operation and brand building activities is one of the major reasons for the losses. In its annual report, Paytm stated,
“The company has incurred huge capital expenditure in creating a brand and establishing its business activity. We have incurred a considerable amount in various capital and operational expenditures which resulted in losses during the financial year.”
However, the company is betting on segments like payments bank, insurance, and ticketing to increase its turnover in the coming years. The company said,
“The company is focusing on strengthening its position in various business segments like Payments Bank, Insurance and Insurance Broking, travel ticketing, hotel, mobile wallet services etc. and that would result into better turnover in coming fiscal years.”
Further, the benefits given to employees also grew by 87 percent to Rs 625.36 crore in FY18 from Rs 332.64 crore in FY17.
At present, Paytm claims to have more than 300 million customers on its platform.
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