Amazon Pay India’s growth stalls in FY25

Amazon Pay India, the digital payments arm of Amazon, saw its growth stall in FY25, as both operating revenue and losses shrank marginally during the fiscal year ending March 2025.

The company’s operating revenue declined 8.3% to Rs 2,097 crore in FY25 from Rs 2,287 crore in FY24, according to its standalone financial statements filed with the Registrar of Companies (RoC).

Amazon Pay India enables users to make payments for shopping on Amazon, as well as for a wide range of external use cases such as utility bills, mobile recharges, ticket bookings, and peer-to-peer UPI transfers. Revenue from the processing fee was the sole source of income for the company during the last fiscal year.

The company’s total income, including other revenue sources, stood at Rs 2,195 crore in FY25, down from Rs 2,369 crore a year earlier.

Advertising remained the single largest cost component for the company, accounting for 52% of total expenses. It increased marginally by 4% to Rs 1,592 crore in FY25. Payment processor fees, the second-highest expense, dropped 5.5% to Rs 845 crore, while employee benefit costs saw a slight decline to Rs 213 crore in FY25.

Communication expenses, outsourced professional fees, and other overheads added the rest Rs 411 crore to the total cost. Overall, the firm managed to reduce its total expenses by 6.7% to Rs 3,061 crore in FY25 from Rs 3280 crore in FY24.

Amazon Pay India contracted its losses by 5% to Rs 866 crore in FY25 from Rs 911 crore in FY24. Its ROCE and EBITDA margin stood at -39.58% and -45.40%, respectively.

On a unit basis, the company spent Rs 1.46 to earn a rupee of operating revenue during the year. The company’s current assets stood at Rs 3,400 crore and cash and bank balances of Rs 506 crore at the end of FY25.