Paytm Parent Company One97 Communications Reports Increased Losses Amid RBI Restrictions

One97 Communications, the parent company of Paytm, reported a significant increase in losses to Rs 840 crore for Q1 2023 due to restrictions on Paytm Payments Bank by the RBI. The company's revenue dropped by 33.48% YoY, and GMV declined by 9.1% quarter-on-quarter. Improvements are anticipated in the next quarter.

Fintech firm One97 Communications, which owns the Paytm brand, announced on Friday that its losses had escalated to Rs 840 crore in the quarter ending June 30. This increase is primarily attributed to the ongoing effects of restrictions imposed on Paytm Payments Bank Ltd. by the Reserve Bank of India.

Compared to the same period last year, when the company posted a loss of Rs 358.4 crore, the current figures show a significant decline. Paytm's consolidated revenue fell 33.48% to Rs 1,639.1 crore, compared to Rs 2,464.2 crore in the prior year's corresponding period.

A Paytm spokesperson linked the widened losses and revenue decline to the business disruption caused by the RBI's restrictions on Paytm Payments Bank Limited's wallet and other products. However, despite a 15% decline in monthly transacting users, the spokesperson noted a 5% YoY increase in GMV to Rs 4.3 lakh crore and pointed to a 27% YoY growth in continued business GMV.