Paytm Q1 Loss Widens to 8.39 Billion Rupees

India’s Paytm reported a significant widening in its first-quarter loss to 8.39 billion rupees ($100.3 million), compared to 3.57 billion rupees a year earlier, primarily due to a regulatory clampdown by the Reserve Bank of India (RBI) which ordered the shutdown of its banking unit, Paytm Payments Bank. The company's revenue also declined by 36% year-on-year to 15.02 billion rupees, impacted by weakness in its payments business which contributes about 69% of its total revenue. This quarter reflected the full impact of the RBI's directive, which led to a sequential decline in loans and a significant drop in revenue from its financial services unit. Despite the setbacks, Paytm expressed confidence in a rebound, citing stability in its consumer base and growth in merchant payment metrics. Shares of Paytm initially dropped but later recovered as the impact had been previously communicated to investors.