PayU Payments reported a three-fold jump in its net loss to R171 crore for the year ended March 31, 2016, according to the company’s filing with the registrar of companies (ROC).
PayU Payments reported a three-fold jump in its net loss to R171 crore for the year ended March 31, 2016, according to the company’s filing with the registrar of companies (ROC). PayU Payment is the Indian arm of the Nasper-backed PayU, a global payment service provider.
Despite a three-fold jump in net loss, the company registered only a modest 50% hike in total revenue to R191 crore from R124 crore, a year ago. On the consumers front, it competes with other payment wallets such Paytm and MobiKwik but it generates a larger share of revenue from its B2B operations – payment gateway service for e-commerce transactions. PayU’s payment gateway is integrated with the back-end services of internet companies such as FreeCharge, Snapdeal, Jabong, BookMyShow, Zomato and Ola, among others.
As an additional source of revenue, PayU will be launching its consumer credit business in partnership with IndusInd Bank. Its digital credit card will be a personalised credit card which enables the customer to make real time decisions such as choosing authentication modes, setting temporary limit or even blocking the card, according to the RoC document.
In FY16, total expenses of the company jumped almost two times to R361 crore from R183 crore in the previous year. The spike in expenses was incurred on the back of the five-fold surge in promotional expenses to R97 crore for the financial year. Employee benefit expenses for the company more than doubled to R57 crore from R25 crore but managerial remuneration contracted to R5.6 crore from R7.1 crore.
You might also want to see this:
“On the investment side, we have focussed heavily in three major areas – SMB (small and medium businesses), credit business and improvement of payment infrastructure in the country,” said Shailaz Nag, COO of PayU India.
Expanding its foray in the Indian fin-tech sector, PayU acquired Citrus Pay for $130 million in September marking one of the largest acquisitions in the space. “The acquisition has consolidated and increased the market share for us, as PayU leads in e-commerce and utility payments and Citrus Pay leads in airline and telecom-based payment,” said Nag.