According to a report by The Times of India, Paytm’s founder Vijay Shekhar Sharma said that Paytm has cut around 15-20% of its cost in the last two months. As of now, Paytm revenues have taken a hit as revenue from online movies and travel booking has taken a body blow. However, revenues from utility payments such as mobile recharge, electricity bills have spiked.
Online transactions are down to a trickle as groceries and medicines are only available on online platforms. To dodge the impact, Sharma said Paytm is cutting down costs across verticals like marketing and cloud-usage, along with renegotiating office rentals.
The company has also stopped sending recharge and bill payments confirmation text messages to users as it costs the company a few lakhs.