One 97 Communications, which is the parent company of fintech company Paytm, revealed a massive loss in the fourth quarter due to higher expenses related to payment processing, marketing and employee benefits.
The company predicts that it will become an operating profit by September 2023, despite concerns expressed by analysts about its business model. 57% since the beginning of this year so far. Read More [Paytm’s Loss Expands, but the Growth Continues].
Paytm, which is headquartered in the National Capital Region of Noida, has confirmed that it is on track to achieve its profitability targets.
PayTM, which competes with Google and Walmart in India’s digital payments market, said revenue in the first quarter rose 89% to 15.41 billion rupees. Read more [Paytm Raises Its IPO Volume To $2.44 Billion].
The company’s net loss amounted to 7.63 billion rupees ($97.97 million) for the three months ended March 30, compared to a loss of 4.44 billion rupees during the same period last year. The company’s payment processing costs increased by 52%, and employee benefits expenses increased by 148%, which pushed Total expenditures to climb 78%.
The company’s average monthly transaction user saw a 41% year-over-year growth to 70.9 million users in the quarter, and the company noted a significant increase in all lending offerings over the past year, as well as an expanding reach by users.