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Paytm’s Net Loss Rise To Four-Fold to Rs 1,549 for FY’16-17

Paytm’s Net Loss Rise To Four-Fold to Rs 1,549 for FY’16-17

E-wallet service provider Paytm’s losses grew four-fold to Rs 1,549 crore in FY’16, the Times of India reported on Tuesday citing documents filed with the Registrar of Companies.

It had reported a loss of Rs 372 a year ago compared to a profit of Rs 5 crore during FY’14. According to the report, Paytm’s founder Vijay Shekhar Sharma drew an annual salary of Rs 3.1 crore in FY’16.

Last week, Sharma sold 1 percent stake in the company for Rs 325 crore to fund his payments bank. Paytm is said to be one of the biggest beneficiaries of PM Modi’s demonetisation drive. The company expects to hit 2 billion transactions by the end of this year.

One97 Communications, the firm that owns Paytm will restructure its current business in preparation of its upcoming Payments Bank. As per the directions of the Reserve Bank of India (RBI), the company would transfer its wallet business to the newly incorporated Paytm Payments Bank Limited (PPBL) after receipt of necessary approvals. RBI had earlier awarded “In-principle Payments Bank license” to founder and CEO of One97 Communications, Vijay Shekhar Sharma.

It has a current user base of over 160 million. The company’s investors include Ant Financials (Alipay), Alibaba Group, SAIF Partners, Sapphire Venture, Mediatek and Silicon Valley Bank.

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