Amazon Pay India Sees Growth Slowdown in FY25

Amazon Pay India, known for its digital payment solutions, experienced a slowdown in growth during the fiscal year 2025, marked by a slight decline in both operating revenue and losses. The company’s operating revenue fell by 8.3%, reaching Rs 2,097 crore in FY25, down from Rs 2,287 crore in FY24, as detailed in the standalone financial statements submitted to the Registrar of Companies.

Services Offered by Amazon Pay India

Amazon Pay India allows users to make payments for purchases on Amazon and offers a variety of external use cases, including utility bill payments, mobile recharges, ticket bookings, and peer-to-peer UPI transfers. The revenue generated solely from processing fees constituted the entirety of the company’s income in the past fiscal year.

Financial Overview for FY25

The company’s total income, encompassing other revenue streams, was Rs 2,195 crore in FY25, a decrease from Rs 2,369 crore in the previous year. Advertising remained the primary expense, representing 52% of total costs, which slightly increased by 4% to Rs 1,592 crore in FY25. Payment processor fees, noted as the second-highest expense, saw a reduction of 5.5%, dropping to Rs 845 crore, while employee benefits costs edged down to Rs 213 crore in FY25.

Cost Management Strategies

Additional costs from communication, outsourced professional services, and other overheads accounted for Rs 411 crore, contributing to the overall expenditure. The firm successfully managed to lower total expenses by 6.7%, finishing the year at Rs 3,061 crore in FY25, compared to Rs 3,280 crore in FY24.

Loss Reduction Insights

Amazon Pay India achieved a 5% reduction in losses, bringing them down to Rs 866 crore in FY25 from Rs 911 crore the previous year. The company’s Return on Capital Employed (ROCE) and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin were recorded at -39.58% and -45.40%, respectively.

Unit Economics

On a unit level, the firm spent Rs 1.46 to generate a single rupee of operating revenue for the year. By the end of FY25, the company’s current assets amounted to Rs 3,400 crore, with cash and bank balances recorded at Rs 506 crore.