Payment solution app Paytm has had a rougher than expected fiscal year ended March 2019 with a 163 per cent increase in its losses, mounting to Rs. 4,217 crore as opposed to Rs. 1,604 crore in the previous year.
The glaring losses stood out against an increase of only 6 per cent in revenue, amounting to a total of Rs. 3,232 crore, at the end of this fiscal up from Rs. 3,052 crore in the year before.
Paytm’s overall expenses for the year saw a jump of close to 60 per cent at Rs. 7,730 crore, according to its annual report, as compared to Rs. 4,864 crore at the end of March 2018.
The company states that these huge expenses were incurred due to the efforts of brand building and operational expenditure. Among the components of overall expenses, ‘other expenses’ were attributed the largest pie at Rs. 6,757 crore at the end of March 2019 as against Rs. 4,152 crore.
“The company is focusing on strengthening its position in various business segments like payments bank, insurance & insurance broking, travel ticketing, hotel and mobile wallet services, and that would result in a better turnover in coming fiscal years,” the company said in the report.
The company is on an expansion spree, gaining foothold across the spectrum of their field, despite the losses. Paytm has invested US $ 2 billion (Rs. 14,000 crore) in the last 2 years to expand the digital payments ecosystem and will spend an additional US $ 3 billion (Rs. 21,000 crore) in the next 2 years to scale the same.