Bloomberg reported that Paytm has announced plans to potentially cut jobs and shed non-core assets on May 22 after the first decline in sales.
Paytm’s troubles are not ending. Ever since RBI has shown strictness against this fintech company, the pressure on Paytm’s business has increased. First, after the huge fall in the shares, the market cap of the company fell, now the company has suffered losses due to decline in sales. Meanwhile, there is news that now the company can cut the number of employees to deal with this bad situation.
News agency Bloomberg reported that Paytm has announced plans to potentially cut jobs and reduce non-core assets after the first decline in sales on May 22. The regulatory investigation by the Reserve Bank of India (RBI) and the subsequent decision have had a significant impact on the company’s operations.
Company’s results were bad in Q4
The loss of fintech company One97 Communications (Paytm) increased to Rs 550 crore in the fourth quarter of the financial year 2023-24. The loss in the same period last year was Rs 167.5 crore. One97 Communications owns the Paytm brand.
Our Q4 FY 2023-24 results were impacted by temporary disruption on UPI transactions and permanent disruption due to PPBL ban,” Paytm said in a statement. Paytm recorded revenue of Rs 2,267 crore.
The company lost customers
Keeping in mind the interest of customers including merchants, the Reserve Bank of India (RBI) barred Paytm Payments Bank Limited (PPBL) from accepting deposits, credit transactions or top-ups to any customer account, wallet and Fastag from March 15. Was. The company said that in the quarter the company wrote off investment of Rs 227 crore for 39 percent stake in PPBL. Bloomberg report says that Paytm has faced difficulties.
The central bank’s decision in January has damaged Paytm’s reputation. After this, concerns started growing that customers could turn to competitors like PhonePe and GooglePay. Paytm lost about 4 million i.e. 40 lakh users during the March quarter.
