Mobile payment company Paytm will be spending close to R600 crore in marketing and advertising during the current financial year.
Its marketing and advertising expenses will spread across all its commercials, online and offline partnership. Though the company did not divulge, it had earlier said that during FY16, its marketing and advertising spend was around R500 crore.
Among its offline partnerships, Paytm has signed a contract with Mother Dairy, a wholly-owned subsidiary of the National Dairy Development Board (NDDB) to enable cashless payment at Mother Dairy Milk Booths. It has also entered a partnership with Cinepolis India to expand its reach in the movie-ticketing space.
Paytm will be spending R50 crore on its latest advertising campaign that will be released across all media platforms, the company said in a statement.
The commercial is conceptualised by advertising agency McCann and shows how Paytm is expanding its services beyond mobile recharges to P2P transfers and QR code.
In FY15, Paytm earned a revenue of R337 crore and incurred total expenses of R697 crore. While its marketing and advertising spends jumped 12-fold to R403 crore, the company reported total loss of R372 crore for year ended March 31, 2015, according to company’s filing with the registrar of companies.
In July 2015, Paytm bagged sponsorship rights for all domestic and international cricket matches that will be hosted by Board of Control for Cricket in India (BCCI) until 2019.
BCCI awarded the sponsorship to Paytm at a bid of R203.28 crore where Paytm will sell out R2.42 crore per match.