Paytm slashes marketing and promo expenses to Rs 659 crore in FY25

Paytm's revenue from marketing services also declined by 33% to Rs 1,158 crore in FY25 from Rs 1,738 crore in the previous fiscal year.

By  Storyboard18| Aug 6, 2025 8:16 PM
In Q1 FY26 also Paytm reported a decline of 12.4% in marketing services revenue.

One97 Communication Ltd, parent company of Paytm, slashed its consolidated marketing and promotional expenses by 28.5% to Rs 659.4 crore in fiscal year 2025 compared to Rs 922 crore FY2024. The company's revenue from marketing services also declined by 33% to Rs 1,158 crore in FY25 from Rs 1,738 crore in the previous fiscal year. According to the fintech firm, the fall in revenue was due sale of movies and entertainment business to Zomato-owned Eternal Ltd for $244.2 million in September 2024.

Paytm's revenue streams include transaction fees charged to merchants and convenience fees to customers, typically a percentage of transaction value for services like travel, entertainment, and deals. Additionally, it generates revenue through subscription and volume-based fees for our cloud and software solutions provided to merchants. Paytm's advertising partners also contribute to revenue based on campaign scale and type.

The company's marketing costs also declined by 17% to Rs 508 crore in FY25 from Rs 612 crore in FY24. Marketing Services include ticketing for travel, deals, gift vouchers, advertising, and credit card distribution for merchants. Paytm reported 18.4% of the turnover from marketing services in FY25.

In Q1 FY26 also Paytm reported a decline of 12.4% in marketing services revenue. The marketing services revenue of the fintech major stood at Rs 247 crore in Q1 FY26 compared to Rs 282 crore in Q1 FY25. The gross merchandise value (GMV)for ticketing, deals & gift vouchers, etc stood at Rs 2,087 crore in the June quarter FY26.

Paytm is sharpening its focus on scaling its leadership in India’s enterprise and MSME merchant segments by deepening the adoption of its payment innovations, while simultaneously expanding its high-margin loan distribution business and strengthening AI-first strategies across operations. A significant thrust area for Paytm is scaling its loan distribution business, a high-margin revenue stream. Besides, Paytm is embedding AI across its entire product suite—both external and internal. This includes automating key functions like onboarding, fraud detection, retention strategies, and customer support, aimed at driving scalable monetization and elevating the overall user experience. Looking beyond domestic markets, Paytm is exploring select international geographies for future expansion. The company expects these ventures to bear fruit over a three-year horizon.

First Published onAug 6, 2025 8:16 PM

Paytm slashes marketing and promo expenses to Rs 659 crore in FY25

Paytm's revenue from marketing services also declined by 33% to Rs 1,158 crore in FY25 from Rs 1,738 crore in the previous fiscal year.