Zomato, Paytm, Nykaa and others spent ₹6,000 crore on their employees last year
Paytmwas the highest spender on employee benefits, incurring ₹1,622 crore expense in FY2022. PolicyBazaar’s PB Fintech spent 80% of its revenue on offering benefits to its employees.
Nykaaand PolicyBazaar cumulatively spent ₹1,800 crore on advertising in fiscal year 2022.
AdvertisementNot all startups are bad for employees. In fact, the top five publicly listed startups have been quite generous to their employees in the last financial year.
According to data collated by Business Insider, digital payments giant Paytm spent the highest on employee benefits — about ₹1,622 crore. It was followed by Zomato, which spent ₹1,479 crore.
Though the amount that PolicyBazaar spent looks lower compared to its peers, it isn’t so. As per Business Insider’s calculations, the fintech company spent 80% of its revenue on benefits to its employees. It was followed by Zomato with 36%, Paytm with 30%, Delhivery with 19% and Nykaa with 8%.The employee benefits expenditure includes salaries, gratuity, insurance contribution and others.
Except Falguni Nayar-led Nykaa, no other tech company was able to clock a profit in the last fiscal year. In fact all the company’s losses widened, instead of decreasing, since their listing last year. Even Nykaa’s profits declined by ₹20 crore in the same time frame.
The inability of these tech companies to show a profit is probably due to their aggressive cash burn caused by extensive spending on advertising and marketing. Paytm, Nykaa and PolicyBazaar cumulatively spent ₹1,800 crore on advertising in fiscal year 2022.
Zomato and Delhivery have not specified the amount they spend on advertising, but have listed it under other expenses.
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