Paytm narrows losses by 42 per cent to Rs 1,701 crore in FY21

BENGALURU: One97 Communications Ltd., the parent company of Paytm, reported another year of loss in FY21 even though the quantum was lower than in the previous year.

The IPO-bound company has managed to trim its losses by 42 per cent to Rs 1,701 crore as compared with Rs 2,942 crore in 2019-2020, according to the company’s annual report.

However, the consolidated revenues shrank by 14 per cent year-on-year to Rs 2,802 crore from Rs 3,280 crore on account of the impact of Covid-19 on businesses during the first few quarters of FY21.

The company had cut its losses by as much as 30 per cent in FY20. In terms of expenses, there was a huge reduction in marketing, promotion spends by 63 per cent to Rs 532 crore for FY21 compared to Rs 1,397 crore a year ago. Payment processing charges for the financial year fell 15 per cent to Rs 1,916 crore.

Like the other unicorns, Paytm has been aggressively reducing its cash burn as it seeks investors’ interest on the domestic stock exchanges.