SoftBank-Backed Paytm Posts Narrower Loss After Winning Users
Paytm posted a narrower loss after winning more users, helped by a campaign to target customers such as small merchants.
(Bloomberg) -- Paytm posted a narrower loss after winning more users, helped by a campaign to target customers such as small merchants.
The SoftBank Group Corp.-backed fintech company reported a net loss of 3.57 billion rupees ($43.6 million) for the quarter ended June 30, compared with 6.44 billion rupees a year earlier. Analysts had estimated a loss of 3.33 billion rupees. Revenue from operations rose 39% to 23.4 billion rupees.
The payment services provider is one of the biggest players in India’s emergent fintech industry, which is benefiting from the country’s growing mobile phone use and expanding middle class. The company, also backed by Jack Ma’s Ant Group Co., has added to its product offerings to reach more users.
Read more: Paytm Leads $6 Billion Rally as India Tech Firms Seek Redemption
Paytm earlier this month disclosed a 23% jump in average monthly transacting users to 92 million for the quarter ended in June. Loan disbursements, a key growth metric, more than doubled to 148.5 billion rupees.
But the shares remain down by more than 60% since its $2.5 billion initial public offering in 2021, depressed by concerns over intensifying competition from the likes of Alphabet Inc.’s Google Pay, Amazon.com Inc.’s Amazon Pay and Walmart Inc.’s PhonePe.
Paytm’s stock price has been volatile after a one-year lock-in for certain shareholders expired on Nov. 15, freeing them to reduce their holdings. SoftBank recently trimmed its stake to about 9.2%.
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