Paytm Mall cuts losses, expands revenues by 25%

Paytm E-commerce (Paytm Mall) has narrowed losses in financial year 2018-19, even as the company expanded revenue by 25 per cent to ~968 crore.

The firm, owned by Paytm Group, reported a net loss of ~1,171 crore, which is 34 per cent lower than the last financial year, by bringing its expenses in control.

According to the company’s filing, accessed by business intelligence platform Tofler, Paytm Mall’s expenses during the period stood at ~2,139.6 crore, a decline of 17 per cent over FY18. This, despite the fact that employee benefits expenses went up close to 12 per cent to ~177.16 crore.

In FY19, Flipkart India Private Limited, the wholesale entity of Walmart-backed homegrown e-commerce firm Flipkart, has widened its losses by 85.91 per cent at ~3,836 crore.

Similarly, several of Amazon’s business entities in India have faced losses in FY19. According to the regulatory documents, combined losses of these entities stood at over ~7,000 crore as on March 31, 2019.

A late entrant into the ecommerce space, Paytm Mall is not leaving any stone unturned in its bid to take on giants such as Amazon and Flipkart. In FY20, Paytm Mall is targeting $2.1 billion (~14,900 crore) in gross merchandise value (GMV) for the entire year. During the ongoing festive season, the company is looking at a GMV of at least $300 million (~2,100 crore).

The firm, owned by Paytm Group, reported a net loss of ~1,171 cr, which is 34% lower than in the last financial year