Amazon Pay, Indian digital payments arm of US-based e-commerce giant Amazon, has posted ₹389 crore in operational revenues in FY18, rising about 100 times from merely ₹4.1 crore in FY17, as revealed by documents filed with Registrar of Companies (RoC).
Even though the payments platform saw a significant rise in revenues, it also saw losses go up to ₹334.3 crore in the current fiscal, from ₹178 crore in FY17, marking an 88% increase.
The rise in losses was due to the growing expenses that ballooned up to ₹727 crore in FY18, from ₹185 crore in FY17. A huge part of the overall expenses went towards the advertising and sales promotion expenses, at ₹264 crore in Fy18, more than doubling from ₹124 crore in the previous fiscal.
Earlier this month, Amazon Pay got ₹590 crore from its parent Amazon. The digital payments platform, previously raised ₹230 crore, in July 2018. So far, Amazon Pay has raised more than ₹1,000 crore this year alone.
In August 2018, Amazon Pay acquired multi-service app Tapzo, in order to expand payment services.
While Amazon Pay incurred heavy losses, amidst significant revenue gains, the story is similar to Flipkart-owned PhonePe, which grew revenues 14 times, while ballooning loss to ₹791 crore, as both the e-commerce giants, push for greater acceptance of their payments platform.