Paytm reports jump in losses and fall in revenues, plans to reduce employee cost by Rs 500 crore
Paytm on Friday reported a 35% fall in its operational revenue for the quarter ended June at Rs 1,501 crore, down from Rs 2,341 crore a year back.
Its net loss more than doubled to Rs 840 crore from around Rs 358 crore a year back.
The Noida-headquartered company has refrained from giving any future guidance on profitability.
Paytm’s financials were mainly impacted by the disruption caused to its associate entity Paytm Payments Bank’s business, which resulted in Paytm losing its high margin payment products like bank accounts and prepaid wallets.
The Reserve Bank of India (RBI) asked Paytm Payments Bank to stop offering basic banking services from March 15.
The company attributed the fall in its revenues to the reduction in certain operating metrics like monthly transacting users and stoppage of some of its credit products.
Addressing a press conference after the announcement of the results, a Paytm spokesperson said the company is focusing on reactivating dormant merchants and targeting new merchants with its payment products.
“There are pilots being conducted on secured credit products like gold loans and loans against property with some banks,” the spokesperson said.
Paytm has completely stopped its ‘buy now, pay later’ product Paytm Postpaid and, instead, is focusing on longer tenure personal loans and merchant loans.
In a major bid to control costs, Paytm wants to reduce its employee expenses by an estimated Rs 400-500 crore per year. In FY24, the fintech major had incurred a total employee cost of
