Amazon Pay India, the digital payments subsidiary of e-commerce major Amazon, reported a slowdown in its financial performance for FY25, with both revenue and losses showing marginal contraction during the year ended March 2025.
According to the company’s filings with the Registrar of Companies, Amazon Pay India’s operating revenue fell 8.3 percent to Rs 2,097 crore in FY25, compared with Rs 2,287 crore in the previous fiscal. Including other income, total revenue stood at Rs 2,195 crore, down from Rs 2,369 crore in FY24.
The platform, which facilitates payments for Amazon purchases as well as external services such as bill payments, ticket bookings, mobile recharges, and peer-to-peer UPI transfers, derived its income primarily from transaction processing fees.
Advertising continued to be the largest expense category, accounting for over half of the company’s total spending. Marketing costs rose slightly to Rs 1,592 crore in FY25, representing 52 percent of overall expenses. Payment processor charges declined 5.5 percent to Rs 845 crore, while employee-related expenses edged down to Rs 213 crore.
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Other overheads, including communication and professional service costs, totalled Rs 411 crore. Overall, Amazon Pay India reduced its total expenditure by 6.7 percent to Rs 3,061 crore in FY25 from Rs 3,280 crore a year earlier.
As a result, the company narrowed its net loss by 5 percent to Rs 866 crore in FY25 from Rs 911 crore in FY24. Despite the reduction, profitability remained under pressure, with the firm recording a negative EBITDA margin of 45.4 percent and a return on capital employed (ROCE) of minus 39.6 percent.
For every rupee earned in operating revenue, Amazon Pay India spent Rs 1.46 during the fiscal year, reflecting modest operational improvements but continued challenges in scaling profitably. The company closed FY25 with current assets of Rs 3,400 crore and cash and bank balances of Rs 506 crore.
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Industry analysts note that the performance reflects broader pressures in India’s competitive digital payments market, where companies are focusing on efficiency and compliance amid tightening regulatory oversight and shifting consumer behaviour.
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Disclaimer: This post is for general informational purposes only. It does not constitute financial advice. Please consult a qualified professional before making financial decisions.
