Topics
Latest
AI
Amazon
Image Credits:Sajjad Hussain/AFP(opens in a new window)/ Getty Images
Apps
Biotech & Health
mood
Image Credits:Sajjad Hussain/AFP(opens in a new window)/ Getty Images
Cloud Computing
commercialism
Crypto
go-ahead
EVs
Fintech
Fundraising
appliance
Gaming
Government & Policy
Hardware
layoff
Media & Entertainment
Meta
Microsoft
Privacy
Robotics
security measures
societal
Space
Startups
TikTok
Transportation
Venture
More from TechCrunch
result
Startup Battlefield
StrictlyVC
Podcasts
Videos
Partner Content
TechCrunch Brand Studio
Crunchboard
reach Us
Indian fintech Paytm ’s struggles wo n’t seem to end . The company on Fridayreportedthat its revenue correct by 36 % and its loss more than doubled in the first quarter as it go forward to contend with a regulatory clampdown that has significantly cut back business at its payments cant subsidiary .
Once the poster child of India ’s startup ecosystem , Paytm ’s loss widened to $ 100 million in the first quarter end June , while revenue shrank to $ 179.5 million from $ 280 million a year earlier .
Paytm reported a loss of $ 42 million in the first quarter last yr , and a loss of $ 65.8 million in the fourth one-quarter .
The descent in revenues is a verbatim issue of the Reserve Bank of India ( RBI ) ordering the company in the beginning this yr tocease most operations at Paytm Payments Bank , a foot soldier that processed much of the mobile payments that the company depended on . This is the first quarter where the full impact of RBI ’s clampdown is visible on Paytm ’s job .
The Indian central coin bank bar Paytm ’s Payments Bank from offering many banking services , including accept tonic deposits and credit entry transaction across its services , citing “ dogged non - compliance ” with regulation .
The move ram Paytm to ink partnerships with other bank in India to continue offering some of its core services .
share of Paytm initially turn down as much as 4.4 % , but now have recovered and are up 2.2 % , suggesting investors had already priced in the impact . Paytm had monish of the diminution in receipts last one-fourth .
Join us at TechCrunch Sessions: AI
Exhibit at TechCrunch Sessions: AI
Paytm pioneer the mobile payments push in India , courting century of millions of people to its notecase app , and enable many of them to make their first digital transactions . But the firm ’s fortunes have dwindle in recent yearsamid growing competition from Walmart - backed PhonePe and Google Pay .
PhonePe and Google Pay physical process more than 86 % of all proceedings on UPI , a government - backed interoperable payment connection . UPI has become the most popular way Indians transact online , and accounts for more than 11 billion transactions each month . The surge in UPI ’s popularity has hurt the relevancy of notecase concern and consumers ’ reliance on scorecard networks maneuver by Visa and Mastercard .
Paytm , which bank to a great extent on dish out merchants , including issuing them credit , said that part of the business is recovering , “ demonstrating our path to recovery . ”
A company spokesperson pronounce in a statement : “ This also indicates the retain trust of our merchandiser partners and consumers on our platform , and we are thankful for the corporate trust of our stakeholder . ”
