ANL 12.62 Increased By ▲ 0.32 (2.6%)
ASC 14.65 Increased By ▲ 0.55 (3.9%)
ASL 15.60 Increased By ▲ 0.56 (3.72%)
AVN 104.25 Increased By ▲ 4.00 (3.99%)
BOP 8.42 Decreased By ▼ -0.01 (-0.12%)
CNERGY 6.47 Increased By ▲ 0.07 (1.09%)
FFL 9.17 Increased By ▲ 0.10 (1.1%)
FNEL 8.95 Increased By ▲ 0.28 (3.23%)
GGGL 13.40 Increased By ▲ 0.22 (1.67%)
GGL 20.88 Increased By ▲ 0.98 (4.92%)
GTECH 9.70 Increased By ▲ 0.30 (3.19%)
HUMNL 6.60 No Change ▼ 0.00 (0%)
KEL 3.16 Increased By ▲ 0.06 (1.94%)
KOSM 4.34 Increased By ▲ 0.29 (7.16%)
MLCF 33.65 Increased By ▲ 0.17 (0.51%)
PACE 4.20 Increased By ▲ 0.14 (3.45%)
PIBTL 7.24 Increased By ▲ 0.07 (0.98%)
PRL 14.34 Increased By ▲ 0.23 (1.63%)
PTC 8.68 Decreased By ▼ -0.01 (-0.12%)
SILK 1.34 Increased By ▲ 0.01 (0.75%)
SNGP 33.80 Increased By ▲ 0.20 (0.6%)
TELE 17.88 Increased By ▲ 0.63 (3.65%)
TPL 13.50 Increased By ▲ 0.48 (3.69%)
TPLP 28.02 Increased By ▲ 2.46 (9.62%)
TREET 39.69 Increased By ▲ 0.99 (2.56%)
TRG 83.30 Increased By ▲ 1.56 (1.91%)
UNITY 27.85 Increased By ▲ 0.54 (1.98%)
WAVES 15.05 Increased By ▲ 0.35 (2.38%)
WTL 2.22 Increased By ▲ 0.08 (3.74%)
YOUW 8.09 Increased By ▲ 0.55 (7.29%)
BR100 4,597 Increased By 11.2 (0.24%)
BR30 17,781 Increased By 212.3 (1.21%)
KSE100 45,018 Increased By 192.3 (0.43%)
KSE30 17,748 Increased By 81.8 (0.46%)

coronavirus
Coronavirus
VERY HIGH
Source: covid.gov.pk
Pakistan Deaths
29,097
2024hr
Pakistan Cases
1,367,605
7,58624hr
Sindh
523,774
Punjab
462,323
Balochistan
33,910
Islamabad
117,436
KPK
184,455

NEW DELHI: India’s One 97 Communications Ltd, the parent of fintech firm Paytm, said on Saturday its net loss for the three months through September widened by 8.4% as expenses rose.

Paytm, reporting its earnings publicly for the first time since this month’s stock market debut reported a consolidated net loss of 4.74 billion rupees ($63.2 million) compared with 4.37 billion rupees in the same period a year earlier.

Revenue rose 49.7% to 11.35 billion rupees.

“We have maintained the growth momentum in our payments services business, expanded our financial services business aggressively and are on our way to pre-COVID volumes for Commerce and Cloud services,” Paytm said in a statement. Paytm, which counts China’s Ant Group and Japan’s SoftBank Group Corp among its backers, raised $2.5 billion this month in India’s biggest initial public offering (IPO), but made a dismal debut on the stock exchanges last week. The stock has recouped some of its losses but remains 17% below its issue price.

“Paytm faces stiff challenges in its customer acquisition engine, which would slow down its revenue growth in the core payments business,” brokerage JM Financial said in a note to clients a day ahead of Paytm’s earnings. “We find valuations rich and the path to profitability fraught with high execution risks in context.”

The company said its gross merchandise value from transactions other than a state-backed peer-to-peer payments network, popularly called UPI, grew 52% in the quarter from a year earlier.

Paytm competes with Google and Walmart Inc’s PhonePe in India’s digital-payments market, and all of these companies offer peer-to-peer payments on UPI.

The company said it was “well funded” with a cash equivalent and investable balance of 110 billion rupees including through the IPO.

Founder and chief executive Vijay Shekhar Sharma has said investors will need time to understand the company’s business.

“Some of the line items in our payment business are not just profit generating but free cash flow generating,” Sharma said in a call for investors. “Our revenues and contribution margins are growing on the back of payment and financial services business where payment itself is the primary driver.”

Its commerce, cloud and financial services businesses had huge potential to make more money for the company, Madhur Deora, Paytm’s group chief financial officer said.

Paytm had a “tremendous opportunity to grow payments” as a means to acquire more customers and merchants, Sharma added.

Founded in 2010 as a platform for adding credit to mobile phones, Paytm grew rapidly after US ride-hailing firm Uber Technologies Inc listed it as a quick payment option in India. Its use jumped in 2016 when India suddenly banned high-value currency notes, boosting digital payments.

Paytm, headquartered on the outskirts of capital New Delhi, offers services including merchant payments, insurance and gold sales, movie and flight ticketing, and bank deposits and remittance.

Comments

Comments are closed.