Digital payments giant Paytm’s ecommerce subsidiary Paytm Mall announced its financial results for fiscal 2018, reporting a jump of 104.42% in its revenues, which touched $105.76 Mn (INR 775 Cr). Paytm Mall started operating as a consumer shopping app in February 2017.
According to the financials, accessed via Tofler, a business intelligence platform in India, Paytm Mall also reported a net loss of $245.65 Mn (INR 1,800 Cr) during the same fiscal, nearly 150 times its net loss of $1.86 Mn (INR13.63 Cr) in the previous financial year.
Here’s a summary of the financial performance of Paytm Mall for FY18:
- The company’s operational income was $101.5 Mn (INR 744.15 Cr) against $976K (INR 7.16 Cr) of the previous year
- Total expenses for the year were recorded at $352.13 Mn (INR 2581.38 Cr), against $2.86 Mn (INR 20.98 Cr) in FY17
- In its growth year, Paytm Mall increased its employee benefit expenses to $21.65 Mn (INR 158.75 Cr), against $1.7 Mn (INR 12.49 Cr) in FY17
- The company’s finance costs also multiplied, reaching $6 Mn (INR 44 Cr) from $66,852 (INR 49 Lakh)
With a net worth of $30.46 Mn (INR 223.30 Cr), Paytm Mall is looking to grow multifold in the Indian ecommerce industry. Here’s a quick look at the happenings at Paytm Mall:
- Paytm Mall is working with 100 FMCG brands, including Marico and Hindustan Unilever, to drive sales through its online-to-offline (O2O) model
- It is aiming at a near-threefold rise in annualised gross sales to $10 Bn by March 2019
- The company achieved $3.5 Bn in annualised gross sales in June 2018
- For its new retail model, Paytm Mall has partnered with fashion and lifestyle brand Red Tape and is set to expand its reach to more than 50 Red Tape stores across the country by the end of 2018
- The company aims to clock business worth $78 Mn (INR 500 Cr) by year-end with the new retail model
- It has also committed $5 Mn under its Retailer Inclusion Programme in August 2017
- Paytm Mall recently appointed senior leadership roles: Srinivas Mothey from GiftingNation (social gifting platform), Milind Pathak from Httpool (ad network), Nikhil Dhoka from BrownTape (multi-channel inventory management), Utkrisht Kumar from Hopscotch (ecommerce platform), and Rohan Chhazed from, ZoomCar (self-drive car rental startup)
- For its festive season sale, the company said that it saw a three-fold jump in transactions during the first four days of its festive sale, driven by categories like mobile phones, laptops, and groceries
According to a report by IBEF, the Indian ecommerce market is projected to grow to $200 Bn by 2026 from $38.5 Bn in 2017.
Growth in Indian ecommerce is synonymous with a stronger presence and Paytm Mall has made it to Top 3 in the sector, after long-time players like Flipkart and Amazon. Now let’s see if can climb up to the top.