Paytm Payments Bank increases advertising & marketing spends five-fold in FY19
The company has reported Rs 19 crore as net profit, while the net loss was about Rs 20 crore in the last fiscal
Paytm Payments Bank, which is backed by the country's largest digital wallet – Paytm, increased its advertising and marketing spends to Rs 34 crore in FY19. This is a nearly five-fold jump when compared to Rs 7 crore in the last fiscal.
The company, established two years back, reported its revenues for the financial year 2018-19 as Rs 1,668 crore, a 131 per cent jump from the last financial year, according to financial data accessed by business intelligence platform Tofler.
Paytm Payments Bank has further reported a net profit of Rs 19 crore during the same fiscal. This is a 192 per cent improvement from last year when the net loss was about Rs 20 crore.
Additionally, the payments bank entity houses Paytm’s e-wallet business, which held deposits of Rs 1,700 crore in the financial year ending March 2019.
Overall as a brand, cricket and television have been consistent with Paytm’s marketing strategies. The company has been part of the IPL for the last two years as Umpire Sponsor with cricket being one independent media vehicle for the brand.
If recent reports are to be believed, the company is planning to transform its payments bank into a small finance bank, which it believes is a more profitable growth model. As per the said reports, Paytm Founder and CEO Vijay Shekhar Sharma has said that the payments bank – Paytm Payments Bank – will approach the government for a licence to allow it to lend to consumers using technology-enabled low-cost operations.
Paytm Payments Bank (PPB) led the rankings in the number of digital transactions reported in the month of July, a report by the Ministry of Electronics and Information Technology (MeiTY) recently said. "MeiTY has set up the 'Digital Payment Mission' with a target of Rs 4,019 crore digital payment transactions in FY 2019-2020 and Paytm Payments Bank has reached 102.01 per cent of the set target," Paytm Payments Bank said in a statement.
The company was established in a bid to target people who don’t have access to professional financial services. Paytm Payments Bank, which received its approval from the RBI in 2015, had gained a lot of attention being the first in the space to gain a bank licence.
