PAYTM PERFORMANCE REVIEW

Revenue Recognition
The following are the areas from where the company is realizing the profit:
1. Sale of mobile value added services: Revenue from services is
recognized as and when services are rendered as per the terms of
agreement with customers. Revenues are disclosed net of the service tax
charged on such services. In terms of contract, excess of revenue over the
billed at the period end is carried in the financial statements as unbilled
revenue.
2. Commission: the company facilitates recharge of talk time, bill payments,
availability of bus tickets and various goods through market place platform
and earns commission for the respective services. Commission income is
recognized on completion of the companys obligation as per the terms of
contract with its customer.
3. Service fees: The Company earns service fee from merchants when the
transaction of sale of goods by the merchants is completed and settled
through its retail market place. Such service fee is generally determined
as a percentage based on value of merchandise being sold by the
merchants. Amount received by the company pending settlement are
disclosed as payable to the merchants under current liabilities.
4. Sale of Goods: Revenue is recognized when the significant risks and
rewards of ownership of the goods have passed to the buyer. Revenues
are disclosed net of the service tax and VAT Charged on such sale of
goods.
5. Interest: Interest income is recognized on a time proportion basis taking
into account the amount outstanding and the rate applicable.
Mode of Business: The company has identified Digital goods and retail
marketplace and mobile marketing as two distinct business.

O ne97
C o m m u n ic a t io n

Digital goods
and retail
marketplace
Mobile
Marketing

Revenue (2015)
29%
71%

Mobile Marketing
Digital Goods and Retail Market place

Revenue (2014)

46%

54%

Mobile Marketing

Digital Goods and Retail Market place

As we can say from the above charts that the company is now shifting its focus
from Mobile marketing to a Market place.

Alexa performance review

Some major facts on PAYTM

2014
1.9B