Money & Bankin

Amazon Pay (India) reduces net losses by 19% in FY21

Forum Gandh Mumbai | Updated on November 08, 2021

Amazon Pay UPI recently added 5 crore customers in India

One customer alone contributed to 94.3 per cent of the revenue

Amazon Pay (India) Private Limited, an online payment arm of Amazon India, has reduced its net losses by 19 per cent to ₹1,516 crore in FY21. Its revenues for the financial year was ₹1,769 crore, a 29 per cent jump from the last financial year.

According to financial data accessed by business intelligence platformTofler and reviewed by BusinessLine, the company’s total expenses for the fiscal were reported as ₹3,285 crore, a marginal increase from ₹3,234 at the same time last year.

Interestingly, according to its financial results, one customer — codenamed as ‘customer A’ — contributed to 94.3 per cent of the entity’s revenue at ₹1,620 crore in FY21 compared to ₹1,197 crore from the same customer in FY20.

Net worth falls

The company — a competitor of Walmart-owned PhonePe, Alibaba-backed Paytm, and Google Pay — saw its net worth eroding to ₹1,683.3 crore in FY21 compared to ₹2,014.9 crore in FY20.

For the same fiscal, Google Payment reported revenues as ₹14.8 crore. The company further reported a net profit of ₹1.4 crore during the same fiscal, a 210 per cent increase from the last financial year.

Investment in NPCI

In FY21, Amazon Pay (India) had made an investment by way of acquisition of 61,320 equity shares of National Payments Corporation of India (NPCI) at a price of ₹1, 256 per share.

Also see: Do e-comm sites squeeze SME vendors?

According to a recent report, Amazon Pay UPI recently added 5 crore customers in India. Over 75 per cent of its customers come from Tier-2 and -3 cities.

Published on November 08, 2021

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