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One97 Communications Ltd, the parent company of payments app Paytm and mobile commerce firm Paytm Mall, has reported a 69 per cent increase in its losses at Rs 1,490 crore during the financial year ending March 31, 2018, according to its latest filings with Registrar of Companies. The company, which is backed by Chinese e-commerce major Alibaba and Japanese Internet giant Softbank reported a loss of Rs 879 crore in the previous fiscal.
During the year, One97’s total revenues more than quadrupled at Rs 3, 314 crore as against Rs 780 crore in FY17, according to its financial filings that was assessed on business intelligent platform Tofler.in. Total expenses during FY18 has doubled at Rs 4,718 crore on back of increased employee and finance costs. It paid salaries worth Rs 540 crore during the fiscal compared to Rs 325 crore in FY 17. Vijay Shekhar Sharma, founder, took home a pay package of Rs 3 crore during FY18.
The New Delhi-based company has about 14 subsidiaries including Paytm Financial Services Limited, and Paytm Labs. One97's subsidiaries are present in countries such as Tanzania, Nigeria, USA, Uganda, Malaysia, Bangladesh and Rwanda.
One97's major revenues comes from its mobile wallet Paytm and its banking arm Paytm Payments Bank, which was launched during 2018 fiscal. With over 300 million users, Paytm is the biggest player in the digital wallet space and has witnessed a meteoric rise in its business post demonetisation in November 2016.
Paytm has also entered several verticals during the period from entertainment, hotel, air and train ticket bookings, gold investments to mutual funds.
The company has said that it will be focusing on providing different investment instruments and wealth management services to its users through its Paytm Money app this year.
One97, founded by Vijay Shekhar Sharma, has however separated its payment and e-commerce business under Paytm and Paytm Mall respectively. The company has recently raised close to $356 million from Warren Buffett’s Berkshire Hathaway at a valuation of $12 billion.
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