FreeCharge posts Rs 235 cr loss in FY16; paltry revenues erode net worth

While losses fell 12.7% in the present FY compared to previous year, revenue growth stood at 2.9%

FreeCharge, the digital payments company owned by e-commerce marketplace Snapdeal, reported a loss of Rs 235 crore on a revenue of Rs 36 crore in 2015-16, eroding the net worth of the company as losses mounted to play catch-up with larger rival Paytm.

While losses fell 12.7 per cent in the financial year compared to the previous year, revenue growth stood at 2.9 per cent, up from Rs 35 crore. This is unlike a lot of new-age Internet companies that forego profits but ensure hefty growth in revenues.

“The accumulated loss exceeds the paid-up share capital and the net worth