As per the company One97 Communications, the loss has occurred on account of higher expenses and lower revenue growth.
In FY19, One97 Communications loss stood at INR 3,960 crore, compared with a loss of INR 1,491.23 crore reported a year ago, according to the sources.
While, the payments startup One97 Communications was able to increase its revenue by a marginal 2 per cent year-on-year (YoY) to INR 3,050 crore in FY19, compared with INR 2,987.41 crore a year ago.
One97 Communications is the parent company of India’s biggest digital wallet platform Paytm.
The loss for the Noida-based Paytm’s parent firm comes at a time of intense competition in the digital payments sector and no clear source of revenue growth path to monetize its customer-base.
According to the sources, in FY19, the firm’s employee-related expenses went up by 16% to ₹627.78 crore
A Paytm spokesperson said, “Joining and leaving an organization is a part of the normal process. We have a well-structured system to assist our colleagues in their journey with Paytm. Performance is also evaluated from time to time based on which certain decisions may be taken.”