- Paytm, the online payment modal has claimed that it has reached profitability at the contribution level
- According to the CFO of PayTm, the company has come up from a loss of 30% to a profit margin of 12%
- He also says that the company has achieved a gross transaction value of $100 billion from the earlier $50 billion
- It has also achieves 15% quarter on quarter growth for the financial year 2020
- The company was facing a loss of Rs 3959 crores in the financial year of 2019
- The costs for the company have come down by 10%
The Noida based online payment gateway company, PayTm, said that they have finally overcome the loss they were facing and are now profitable at the contribution level. The CFO, Vikas Garg, said that the company’s contribution margin has come up to a profit margin of 12% from the loss of 30% earlier.
These margins include the revenue minus the direct costs incurred in providing services to any customers. Besides this, Mr Garg has also mentioned that the Gross Transaction value has come up to $100 billion, from the previous GTV of $50 billion.
The company has also seen a 15% quarter on quarter growth for the financial year of 2020, and also expects to lower the losses of the financial year of 2019- Rs 3959 crores. In the past 2 quarters, there has been a 10% decrease in the costs incurred due to shift of focus to merchant payments.
The PayTm company has around 130 million users who are active and more than 450 million registered ones. They have decided to allocate 750 crores to expand their active user count, and increase the registered ones by 250 million. The company is also set to start an initial public offering within 2 years. The goals as quoted by the PayTm chief,
“i’d prefer to see a 5% reduction in margins right now, maybe 10% incremental, so maybe two years. i’m talking free cash, not profitability. i make money, but i’m looking to make free cash, and then i’ll go. when i’m comfortable issuing bonds that i can sell in 5 years, then i’ll go.”