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Paytm’s YoY Loss Widens By 20%, Revenue Grows By 76% in Q2 FY23

What’s the news: One 97 Communications (Paytm's parent company) reported a 76% (YoY) jump in its Q2 revenue from Rs 1086.4 crore in FY22 to Rs 1914 crore in FY23. However, its YoY Q2 loss widened by 20.6% from Rs 473.5 crore in FY22 to Rs 571.5 crore in FY23.6 Compared to the previous quarter, the company's revenue grew 14% from Rs 1679.6 crore to Rs 1914 crore and its loss was reduced by 11.4% from Rs 645.4 crore to Rs 571.5 crore. The company's total expenses in Q2 FY23 stood at Rs 2,561.4 crore out of which Employee Benefits Expense accounted for 36.8% of the costs, payment and processing charges accounted for 29.2% of the costs, and marketing and promotional expenses accounted for 12.7% of the costs. Paytm, founded by Vijay Shekhar Sharma, went public on 18th November 2021 with a listing price of Rs 1,560 (NSE). Yesterday (8th November 2022), the share closed at Rs 652, down 58% from its day of listing. Other non-GAAP (Generally Accepted Accounting Principles) metrics for Q2 FY 23.  Revenue from payments made by customers on the Paytm app stood at Rs 549 crore, up 55% YoY. How does Paytm get this revenue? "Consumers pay platform fee for select use cases and merchants pay MDR" (Merchant Discount Rate). "Revenue for processing payment in merchant store or app or website and subscriptions from merchants for payments devices" stood at Rs 624 crore, a 56% YoY growth. This revenue comes when Merchants pay MDR for cards,…

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