Paytm cuts marketing spends by 38% YoY to Rs 104 Crore in Q3 FY25

On a QoQ basis, the marketing spends were down by 17% in Q3. In the last quarter, the company spent Rs 125 crore on marketing

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New Delhi: Digital payments giant Paytm reported a 38% decline in marketing expenses to Rs 104 crore in Q3, down from Rs 169  crore in the corresponding quarter of the previous year.

On a QoQ basis, the marketing spending was down by 17% in Q3. In the last quarter, the company spent Rs 125 crore on marketing. 

Regarding marketing costs, the company anticipates that future spending will follow "erstwhile trends." The company emphasised an increased focus on customer acquisition through marketing efforts.

Fintech company One97 Communications, which owns the Paytm brand, has reported a narrowing of consolidated loss to Rs 208.5 crore in the third quarter ended December 31, 2024.

Despite the reduced marketing spend, Paytm saw a 6% increase in monthly transacting users (MTU), rising from 6.8 crores to 7.2 crores. The company attributed this growth to "disciplined investments in brand and performance marketing."

The company had posted a loss of Rs 221.7 crore in the same period a year ago, the company said.

The revenue from operations of Paytm declined by 35.8% to Rs 1,827.8 crore during the reported quarter, from Rs 2,850.5 crore in the December 2024 quarter.

The revenue was, however, up 10% on a quarter-on-quarter basis, the company added.

In August, Zomato acquired Paytm's entertainment ticketing business for Rs 2,048 crores. Zomato rebranded the business as "District."

In Q3 FY 2025, Paytm's marketing services revenue reached Rs 267 crores, excluding the entertainment ticketing business, compared to Rs 268 crores in the previous quarter. 

The company stated that "growth in MTU will be one of the key drivers for growth of marketing services revenue."

Paytm's marketing services business encompasses advertising, travel ticketing, credit card distribution, and deals and gift vouchers.

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