Fintech startup Paytm’s share prices decline further as the net loss widens in Q2
- ByTejika Bajaj | November 29, 2021
One97Communication, the parent company of the fintech startup Paytm observed a deep plunge in its share prices as they fell as much as 4.6% following a rise in the net loss of the startup in Q2.
The company’s first earning report since going public was filed earlier this month and revealed that the expenses has jumped 37.1% over the year ago to INR 1,599 crore. Further the consolidated net loss of the fintech startup increased to INR 474 crore from INR 437 crore a year ago. The revenue from operations however surged 63.6% to INR 1,086 crore for the quarter ended September.
The SoftBank Group and Ant Group backed financial payment startup Paytm raised $2.5 billion earlier this month in India’s biggest initial public offering. However, the startup experienced a rocky debut on the stock exchange. While the stock has recouped some of the losses which occurred during the debut, they have still remained nearly 21% below its IPO price of INR 2,150.
The founder and CEO of Paytm, Vijay Shekhar Sharma, talked about the reported expenses by stating, “Some of the line items in our payment business are not just profit generating but free cash flow generating.”
The continuous fall in the market share price of the parent company indicates more losses for the firm in the near future. Further, investors who bought the shares of the fintech startup have now started contemplating the sale of the same since they believe that they would not add any significant value in the near future.
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