Paytm may use its $1 billion funding to add new services and reach rural customers - Business Insider

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Adding $1 billion in funding may lessen concerns about Paytm's profitability, allowing it to expand its business instead of trying to cut costs:

66% of its total population in 2018, there's likely a significant opportunity for Paytm to raise its performance by targeting the segment.

Adding $1 billion in funding may also lessen concerns about Paytm's profitability, allowing it to try to develop and expand its business instead of trying to cut costs. Paytm a net loss of approximately $549 million in its fiscal year , rising 165% annually while its revenue jumped just 5.9% annually.

The $1 billion in funding could make it easier to weather such losses, and adding new and profitable services might also help it combat losses going forward, considering Indian digital payments platform MobiKwik recently profitability thanks in part to its focus on financial services rather than customer acquisition for its processing business.

Paytm needs to shore up its performance because it's facing increased competition from a number of players. Paytm is competing with Google Pay and PhonePe and may be going head-to-head with a payments offering from

 

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