Indian e-payments and e-commerce brand Paytm’s, which has recently joined India’s growing accelerators and incubators through its incubator programme, parent company One97 Communications’ which got invested a sum of Rs 12000 crore from Softbank, restructuring exercise wherein it separated its online retail from its payments business has helped it pare losses by over 40% to Rs 900 crore in the financial year 2016-17 from Rs 1,548 crore in FY16. The organization had hived off its e-commerce platform into Paytm Ecommerce (Paytm Mall) while it turned into a 49% investor in the installments bank business.
Paying Rs 620 crore to One97 Communications
Paytm E-commerce had paid Rs 620 crore to One97 Communications for the transfer of assets during restructuring. This is likely to have brought down the losses for the parent company. One97 is yet to file its detailed financial statement.
Making Revenue of Rs 1,752 crore in FY18
One97 Communications’ filings for its valuation before getting the subsidizing from SoftBank demonstrate that it projected to make incomes of Rs 1,752 crore in FY18 in spite of the fact that its misfortunes is probably going to be Rs 1,383 crore, according to the valuation done in May a year ago.
Losses by Paytm E-Commerce and Paytm Payments Bank
Incorporating in August 2016, Paytm E-Commerce acquired the retail marketplace business of One97 for Rs 620 crore, including Rs 213 crore for intangible assets. Paytm E-Commerce, in turn, showed losses of only Rs 13.63 crore in FY17. The Paytm Payments Bank showed losses of Rs 30 crore for the same period.