Tech startups struggle to get out of the red amid mktg and staff cost spike

While losses widened by 45% and 55% at fintech peers Paytm and PB Fintech, respectively, food delivery firm Zomato remained in the red despite narrowing its net loss by 81%

Technology start-ups that got listed in the last few quarters reported a hit to their December-quarter (Q3FY22) profitability due to higher marketing and employee costs.

While fintech firms Paytm and PB Fintech saw their losses widen by 45 per cent year-on-year (YoY) to Rs 778 crore and 55 per cent to Rs 295 crore, respectively, food delivery company Zomato remained in the red despite narrowing its net loss by 81 per cent to Rs 66 crore. Meanwhile, online fashion and beauty products seller Nykaa saw its net profit drop 59 per cent to Rs 28 crore in Q3FY22.

“Nykaa and Policybazaar had