New Delhi: Paytm e-commerce narrowed its losses to Rs 1,171.62 crore in 2018-19 from about Rs 1,787.73 crore in the previous financial year, according to regulatory documents.
Paytm e-commerce, which is locked in a battle with giants like Amazon India and Walmart-backed Flipkart, clocked about 25 percent jump in total revenue at Rs 968.16 crore in 2018-19 as against Rs 774.86 crore in the financial year ended March 2017, the regulatory documents sourced by business intelligence platform Tofler showed.
When contacted, Paytm Mall Director Rudra Dalmia said Paytm Mall is focusing on building out online-to-offline business channels.
"Paytm Mall is focusing on building out O2O business channels whilst continuing the online business at contribution margin positive levels. The goal is to be Ebitda (earnings before interest, tax, depreciation and amortisation) neutral by Q2-2020 and profitable by Q1-2021," he said.
While e-commerce in the country is at a fledgling stage, reports estimate it to become a $200-billion opportunity over the next few years. US-based Amazon and Walmart are placing multi-billion dollars bets on the Indian market, even as their e-commerce ventures here incur huge losses.
Amazon has committed $5 billion worth of investment in India in 2016, while Walmart had picked up 77 percent stake in Flipkart for $16 billion last year. These entities have been investing millions of dollars across various operations like marketplace, infrastructure and supply chain management as well as marketing and promotion.
However, this rapid scaling up has not come cheap. Amazon Seller Services, the online marketplace arm of Amazon in India, managed to narrow its losses to Rs 5,685 crore in 2018-19. Its revenues grew 55 per cent to Rs 7,778 crore in 2018-19 over the previous financial year.
Flipkart Internet, the unit that runs Flipkart's marketplace business, recorded 40 percent rise in losses to Rs 1,624 crore for the year ended 31 March. Its revenue increased by 33 percent to Rs 4,804 crore.
Updated Date: Nov 01, 2019 08:14:26 IST