7th Straight Annual Loss for Paytm

Paytm loses Rs. 2833 Crore, and also faces a reduction in its revenue by 1%

Paytm is One97's (it's the parent company) flagship. It is part of the oligopolistic UPI based fund transfer sector. The app which initially became famous for its catchy slogan "Paytm Karo" is now losing its revenue.

Now, most large e-commerce businesses make losses.

Amazon, Snapdeal, and Flipkart have all reported losses over every quarter. The losses arise because the e-commerce platforms wish to sell below the MRP, give large discounts, and have hundreds of side ventures. They focus on using the market shares as their primary source of income while their sales revenue does the task of ensuring that the sellers stick with them. Even though those e-commerce giants report losses, they do not have falling sales. However, Paytm is not following this general e-commerce based pattern.

Paytm reported its 7th consecutive annual loss and now has seen a decrease in its sales revenue. Now, should this startle you? Is it a big deal? No. Not really. Paytm might see a 1% reduction in income. However, it has also seen a 28% decrease in its loss figures. Making a loss is a problem; however, with Paytm, that figure is slowly yet surely diminishing.

In FY19 Paytm's loss came to Rs. 3000 Crore, and now it has shrunk to Rs. 2833 Crore. This decrease in Paytm's losses is compensatory to the reduced revenue. It would be an alarming situation when the sales revenue dipped and the loss percentage rose, however, this is not the case.

Paytm, this financial year has been focusing on cutting previously adopted expenditures. Its focus has also shifted towards establishing more considerable dominance in the market by providing more platforms for merchants and buyers. The 1% decrease is a side effect of the shifted focus for the firm and nothing more.

Paytm will supposedly become profitable by FY22, they say this on the backing of up and rising platforms under the parent company One97's name such as, Paytm for Business, Soundbox (an electronic/versatile QR code display) and Business Khata (digital ledgers and accounts which are connected to Paytm).

These possible new ventures may come out from the dark and overtake the wide-spreading Google Pay to take over the merchants. The projection has been made for FY22; now it is the waiting game to see whether the company turns profitable by the end of FY22 or not.