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MUMBAI, Aug 5 (Reuters) – Indian digital payments company Paytm (PAYT.NS) reported a bigger first-quarter loss on Friday as spending on marketing and employee benefits increased, but reiterated its target for achieve operational profitability next year.
The company’s parent company, One 97 Communications Ltd, reported a consolidated net loss for Paytm of 6.45 billion rupees ($81.28 million) for the quarter ended June 30, 69% higher than the loss of 3.81 billion rupees ($48 million) a year earlier.
Total revenue, however, increased by almost 88% to 17.81 billion Indian rupees, according to the company’s stock market filing.
Paytm, which competes with Google’s (GOOGL.O) payment app and Walmart Inc’s (WMT.N) PhonePe in India’s digital payments market, said it aims to achieve operational profitability of by September 2023.
The company is “firmly on the path to operational profitability through better cost leverage,” he said.
Its total spend increased by 84%, with marketing and benefits costs rising sharply.
Paytm disbursed loans worth 55.54 billion rupees in the quarter, nearly nine times more than a year earlier, it said last month.
The company, backed by China’s Ant Group and Japan’s SoftBank Corp (9984.T), raised $2.5 billion late last year in one of Europe’s biggest initial public offerings. India, but got off to a dismal start due to concerns over its high valuation and uncertain path. to profitability. Read more
Reporting by Mr. Sriram; Editing by Aditya Kalra, Kirsten Donovan and Jan Harvey
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