Reshab AgarwalWith the increased usage of the online payments platform Paytm and the reduction of Cashbacks and promotions, the company managed to cut down Paytm Mall’s losses by 60%. The losses were down from Rs 1171 crores in 2018-19 to Rs 479 crores in the Financial Year 2019-20. This news comes after we got to know overall, Paytm’s revenue rose to Rs 3629 crores in FY20, and losses were down by 40%.
What is Paytm doing to reduce losses?
At the beginning of September 2020, Paytm President Madhur Deora said, “We are on the path to empowering millions of Indians with digital financial services that would play a key role in building Atmanirbhar Bharat. We are also investing heavily in building digital services for our merchant partners. Our efforts have started reflecting in the strong adoption of more profitable services by our consumers and merchants.”
Image Source: entrackr
Now Paytm Mall’s Chief Operating Officer Abhishek Rajan, said, “During the last fiscal year, we have streamlined business operations to improve our unit economics, which has helped us in reducing losses by 60%. Our efforts are to become profitable with hyperlocal outreach and initiatives which have already started giving positive results”. Adding to the previous statement, he also said:
“The company over the last several months has done a deep analysis of the overall operations and zeroed in on elements including cashbacks, promotional campaigns, that were draining resources and increasing costs”.
Future of Paytm
Image Source: Paytm blog
Nowadays, almost all shops, e-commerce sites, malls, Universities, and every other place accepts money using Paytm. The startup has become a household name for online transactions and this might mean that it will soon become the largest profit-generating online platform for transactions in India.
The revenue of Paytm Mall has dropped down from Rs 968 crores to Rs 703 crores in FY20. But an overall lower loss is a significant move forward for the company. According to reports, the continuous reduction in losses Y-o-Y might finally lead to profit generation by the end of 2022.
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Read: Paytm’s revenue rises to Rs 3629 crores in FY20