Paytm reported a 162% increase in consolidated net loss at Rs 4,217 crore for the financial year ended March 31, 2019 due to increased competition from Google Pay and Flipkart-owned PhonePe and increased capital expenditure for various businesses.
The company had reported a consolidated net loss of Rs 1,604 crore in the previous year, multiple media reports said, quoting the annual report of 2018-19.
The consolidated number includes losses from businesses like mutual fund investment platform Paytm Money, insurance platform Paytm Financial Services, Paytm Entertainment Services and others, The Economic Times reported.
Paytm recorded expenses of Rs. 7,730 crore for the year ended March 31, 2019, nearly double compared with Rs. 4,864 crore expenditure the previous year, Mint reported.
On a standalone basis, Noida-based One97 Communications, which operates Paytm, reported a 165% increase in net loss at Rs 3,959 crore compared to Rs 1,490 crore for the previous financial year.
The company reported a marginal 3% increase in revenue at Rs 3,319 crore compared to Rs 3,229 crore for the financial year of 2017-18.
Paytm did not respond to emails sent by TechCircle on the reported financial results at the time of writing the report.
“We have incurred a considerable amount in various capital and operational expenditures which resulted in losses during the financial year,” Mint quoted from Paytm’s annual financial report.
The digital payments unicorn is focusing on strengthening its position in segments such as payments bank, insurance, hotel and mobile wallet services, the report added.
In August, One97 Communications announced that it would allocate Rs. 750 crore to bolster efforts for bringing in more customers onboard and roping in merchants in small cities and towns. Paytm also expanded its services to facilitate payments for travel, entertainment, bill payments, mobile recharge, education fees and financial services.
The company also made some top-tier hires in its subsidiaries to boost growth.
Earlier this month, Pravin Jadhav was appointed managing director and chief executive officer of Paytm Money. Jadhav previously served as a whole-time director of Paytm Money.
In August, a former executive at investment banking company Goldman Sachs Amit Nayyar was appointed as president of Paytm Financial Services. The company had said Nayyar was expected to lead efforts in stepping up business in lending, insurance, broking and wealth management.
Paytm recently expanded its services in the education sector by introducing services such as tuition fee insurance and debit cards for students. The services will be additions to its existing services such as career counselling and education fee payment.