One97 Communications Ltd, which is the parent company of the Paytm, has now nearly tripled its loses in the year 31st of March as it spent more on expanding its business and building its brand.
On a consolidated basis, the company loss has been widened to INR 4217.20 crore in the year ended 31st of March from the INR 1604.34 crore in the year-ago period, according to the report which has been revealed by the company officials.
The company total revenue roses to 8.2% to INR 3579.67 crore in the FU 2019 from the INR 3309.61 crore a year ago. Its expenses nearly doubled to INR 7730.14 crore in the year 31st of March from the INR 4864.53 crore in the previous year.
“The company has incurred huge capital expenditure in creating a brand and establishing its business activity. We have incurred a considerable amount in various capital & operational expenditures, which resulted in losses during the financial year,” the company said in the annual report.
In the report the company has revealed that it is focusing on strengthening its position on the various business segments like the insurance broking, travel ticketing, insurance, payments bank, mobile wallet services, hotel, and among others, which its beliefs would help to get the good results and better turnover in the coming fiscal year.
“The business and consumer confidence is expected to improve in the coming years, geared with a streamlined organizational design, the company intends to grow its businesses. The improvement in consumer sentiment and increased consumer spending through online platforms will enable the growth momentum to pick up,” the company said in the report. “The management continues to be cautiously optimistic towards the external economic environment and expects consumer demand to become more consistent and robust in the ensuing fiscal years. Further, various policy decisions taken would act as a growth channel for the company, which would contribute to increased revenues and higher margins.”
In the month of August, Vijay Shankar Sharma, the founder of Paytm valuation has jumped 25% to $15 billion in the lastest funding round that saw the several employees cash out their shares worth $150 million.