Digital payments and ecommerce company Paytm will invest Rs 300 crore into its travel business which includes flights, hotels, and bus tickets booking, the company in a statement. It claims to have completed over 1 million flight and bus bookings combined, while the company claims that its bus tickets business recently broke-even.
Paytm entered the travel business with the introduction of hotel booking in October last year with over 20,000 hotel listings initially. It eventually added bus and flight bookings in this year. In March Paytm tied up with INOX and PVR and other unnamed cinema houses to sell movie tickets on its platform. Last month, it claimed to book at least 100,000 movie tickets every day with over 2250 screens on its platform. For comparison: BookMyShow said that it sold over 30 million tickets (all tickets, not just movies) in Q1 FY17 compared to 22 million in the same quarter last year, registering a growth of 38%.
After splitting its ecommerce business (which includes travel business) from its primary digital payments in June, the company raised $60 million from Taiwanese semiconductor manufacturer MediaTek last month as part of a $300 million expected round. It had also borrowed close to Rs 300 crore from private sector lender ICICI Bank in working capital loans in March this year.
Paytm had previously raised an undisclosed amount in funding from Alibaba and Ant Financial in September last year. In February the same year, Ant Financial Services acquired 25% stake in One97 Communications for an undisclosed amount.
Paytm numbers and financials
Currently Paytm claims to have over 130 million users for its payment platform. In August 2015, the company had announced that it crossed 100 million users, and that it was carrying out 75 million transactions every month and its wallet was accepted by over 80,000 merchants across the country. In July Paytm invested Rs 350 crore into its payments bank division for developing its technology and to build physical branches in rural areas.
One97 financials: For the financial year 2014-15, One97 Communications reported revenues of Rs 336.9 crore, a growth of 60.47%, from the year before. Losses, however, increased to Rs 372.01 crore from a profit of 5.68 crore last year. Total expenditures increased exponentially to Rs 674.42 crore from Rs 179.85 crore in the previous year.