One97 Communication Limited, the parent company of online payment app Paytm, which is preparing for IPO, has reduced revenue by 14 percent in the financial year 2020-21 and but its loss has come down to Rs 1701 crore. During the financial year 2019-20, the company’s loss was Rs 2942 crore. The company has sent an annual report to its shareholders. China’s Alibaba and Japan’s SoftBank-backed one97 Communication Ltd are preparing to bring their IPO. By next month, it can file its DRHP with SEBI. Paytm was founded by Vijay Shekhar Sharma. Today it is one of the most important companies in India. The total valuation of this start-up is $16 billion.
Losses controlled due to reduced spending on discounts, cashbacks and promotions
The company’s revenue has remained flat for the second year in a row. However, reducing spending on discounts, cashback and promotions has helped it reduce its losses. The company’s marketing and promotion expenses have come down by 61 per cent to Rs 532 crore. A year ago it was Rs 1397 crore. The total expenditure of the company has come down to Rs 4783 crore. Whereas its last year it was Rs 6138 crore. Paytm is constantly trying to reduce its losses. Paytm says that its merchant business has been affected due to the corona infection, but it has not caused much loss to revenue.
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According to the report of news agency Bloomberg, Paytm’s IPO can be $ 300 million, or about Rs 22,500 crore. That is, the company wants to raise Rs 22500 crore from the market through IPO. After this, its valuation is estimated to increase to $ 25-30 million i.e. Rs 2.25 lakh crore. Paytm’s IPO may come by Diwali this year. If this happens, then this Diwali can be a bang for the investors of the primary market.
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