PhonePe, subsidiary of Flipkart has joined the bandwagon of tech companies with heavy losses. In spite of rising revenues in the financial year 2017-2018, they incurred heavy losses, Business Today has reported.
The company saw a significant increase in its market share and transactions processing volume this financial year and has spent Rs 70 crore every month to achieve that.
In FY18 the revenues rose from Rs 3.02 crore to Rs 42.79 crore and but losses grew from Rs 662.02 crore to Rs 791.03 crore. Losses were 18 times more than the operating revenue.
PhonePe’s total expenses grew from Rs 146.34 crore in FY17 to Rs 840 crore in FY18. About 72 per cent of it was spent on marketing and about 16 per cent in employee expenses. Flipkart also posted combined losses of Flipkart India and Flipkart internet amounting to Rs 3,222 crore in FY18. Flipkart India incurred losses of Rs 2,063.8 crore and Flipkart Internet incurred a loss of Rs 1,160.6 crore.
One97 Communications the parent of PayTM has reported a net loss of Rs 1,490.4 crore for FY18, compared to Rs 879.6 crore in FY17 but its operating revenue grew to Rs 2,987.41 crore in FY18 as against Rs 624.76 crore in FY17.
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