Paytm's losses for 2018-19 had nearly tripled to Rs 4,217.20 crore from Rs 1,604.34 crore in the year-ago period, as per reports.
Paytm founder Vijay Shekhar Sharma on Monday said he expects Paytm Mall – the company’s e-commerce unit – to break even in a year’s time. Sharma maintained that Paytm will consider getting listed on stock exchanges only after 2021 when the financial services company starts generating cash. “Paytm Mall business is close to break-even, USD 3 million EBIDTA loss a month and USD 1.2-1.3 billion run rate.
In a day, we do 275,000-300,000 orders a day. In festive season, this peaks to half a million orders a day, double of the average day,” Sharma told PTI on the sidelines of the India Mobile Congress 2019. Asked if more funds would be pumped into Paytm Mall, Sharma said: “We have money in the bank, we have USD 260 million, so I would say that we can give more growth capital to it, so basically after a year, Paytm Mall would break even for sure”.
Last year, Paytm Mall had raised close to Rs 2,900 crore from SoftBank Investment Holdings and Alibaba.com Singapore E-commerce in a deal that valued the online shopping venture of Paytm at USD 2 billion. Paytm Mall competes against giants like Flipkart and Amazon in the Indian e-commerce segment. Earlier this year, US-based e-commerce firm eBay bought a 5.59 per cent stake in Paytm Mall for USD 160 million (around Rs 1,101 crore), according to a regulatory filing by Paytm E-commerce Pvt Ltd. With that round, Paytm Mall had raised about USD 805 million in total funding across three rounds.
Alibaba’s Singapore-based entity owned 30.15 per cent stake in Paytm Mall, while SoftBank had a little over 21 per cent post the investment. Paytm Mall had reported a net loss of Rs 1,787 crore on total sales of Rs 774.8 crore in the year ended March 2018. On Paytm’s IPO plans, Sharma said he has always aimed at an IPO after 2021. “The plan for an IPO was always beyond 2021. I have always said we will look at an IPO when we start generating cash,” Sharma said. Paytm’s losses for 2018-19 had nearly tripled to Rs 4,217.20 crore from Rs 1,604.34 crore in the year-ago period, as per reports.