Vijay Shekhar Sharma-owned company One97 Communications, has posted over a two-fold rise in loss for the FY19, reported Mint.
As per the company One97 Communications, the loss has occurred on account of higher expenses and lower revenue growth.
In FY19, One97 Communications loss stood at INR 3,960 crore, compared with a loss of INR 1,491.23 crore reported a year ago, according to the sources.
While, the payments startup One97 Communications was able to increase its revenue by a marginal 2 per cent year-on-year (YoY) to INR 3,050 crore in FY19, compared with INR 2,987.41 crore a year ago.
One97 Communications is the parent company of India’s biggest digital wallet platform Paytm.
The loss for the Noida-based Paytm’s parent firm comes at a time of intense competition in the digital payments sector and no clear source of revenue growth path to monetize its customer-base.
According to the sources, in FY19, the firm’s employee-related expenses went up by 16% to ₹627.78 crore
A Paytm spokesperson said, “Joining and leaving an organization is a part of the normal process. We have a well-structured system to assist our colleagues in their journey with Paytm. Performance is also evaluated from time to time based on which certain decisions may be taken.”