Paytm posts a massive ₹4,217 crore loss as it continues to spend on branding

• Paytm’s revenue rose to ₹3,579.67 crores from ₹3,309.61 crores last year.
• However its expenditure also grew to hit ₹7,730.41 crores.
• Paytm, which was a sponsor for the ICC cricket world cup, had also recently won the bid for BCCI matches for ₹326.80 crores.

One97 communications which owns Paytm has posted losses to the tune of ₹4,217 crore, according to reports.

While Paytm’s revenues rose to ₹3,579 crore from ₹3,309 crores last year, its losses widened because of its growing expenses which hit ₹7,730.41 crore.

A Mint report quoted Paytm from its annual report where it said it “has incurred huge capital expenditure in creating a brand and establishing its business activity. We have incurred a considerable amount in various capital and operational expenditures which resulted into losses during the financial year.”

In its bid for branding, Paytm has definitely gone a step ahead. It bagged the title sponsorship for BCCI’s international and domestic matches for which the winning bid was at a price of ₹326.80 crores to be paid for 2019-23 home season. Paytm was also one of the sponsors for the ICC Cricket World Cup.

Meanwhile, One97 Communications is also in talks to acquire Rana Kapoor’s stake in Yes Bank according to reports.

Paytm along with its subsidiaries Paytm Mall and Paytm Money, have all been striving for profitability. Paytm founder Vijay Shekhar Sharma had also mentioned that the company will start preparing for an initial public offer, saying that an IPO is ‘inevitable’.