Paytm Mall’s losses contract 35% in FY19, revenue up 25%
While Paytm’s e-commerce unit was able to show a marked reduction in losses in FY19 while still growing revenue, the Softbank-backed company lags larger industry rivals- Flipkart and Amazon in terms of earnings.
Paytm Mall saw revenue jump 25% to Rs 968 crore in FY19, from Rs 775 crore in the previous reporting period, according to regulatory filings sourced from business intelligence platform Tofler. The company was able to reduce expenditure across the board, except employee benefits, which rose to Rs 177 crore in FY19 from Rs 159 crore in the previous year. Other expenses, which contributed the largest chunk of spending, reduced to Rs 1,913 crore from Rs 2,215 crore.
While Paytm’s e-commerce unit was able to show a marked reduction in losses while still growing revenue, the company lags larger rivals Flipkart and Amazon in terms of earnings. The company still lost more money than it made — Rs 1.21 for every rupee in revenue it made in FY19.
Flipkart India, the marketplace unit of the Walmart-owned e-commerce firm, saw revenue grow to Rs 4,804 crore, while losses crept up to Rs 1,624 crore. Amazon Seller Services, the equivalent marketplace unit of Amazon saw revenue grow to Rs 7,593 crore, on a loss of Rs 5,685 crore.