Paytm was 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.- Paytm,
Nykaa and PolicyBazaar cumulatively spent ₹1,800 crore on advertising in fiscal year 2022.
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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