Amazon Pay (India) Pvt Ltd, the digital payments arm of Amazon India, has narrowed its net loss by 5% to ₹866 crore in FY25 (ended March 31, 2025), even as revenue from operations declined 7% to ₹2,195 crore from ₹2,365 crore in FY24. According to regulatory filings accessed by Business Standard and Tofler on October 7, 2025, the improvement stems from a 7% reduction in total expenses to ₹3,061 crore, primarily due to lower advertising and promotional costs amid a strategic focus on user acquisition and partnerships like IRCTC and Kuvera. For fintech investors, UPI ecosystem analysts, and e-commerce watchers searching Amazon Pay India FY25 loss 866 crore, Amazon Pay revenue FY25, or fintech India financials 2025, this performance highlights resilience in a competitive landscape dominated by PhonePe (40% UPI share) and Google Pay (35%), where Amazon Pay processed 98 million UPI transactions worth ₹10,830 crore in August 2025 alone. Employee benefits remained stable at ₹213 crore (down marginally from ₹216 crore), while the company received its payment aggregator (PA) license from the RBI in February 2024, enabling expanded services like wealth management and travel bookings. With a 9% revenue dip in FY25, Amazon Pay continues to invest in growth, backed by parent infusions of ₹850 crore in FY24 and ₹600 crore in May 2025, positioning it against Paytm’s 34% Q2 FY25 revenue decline to ₹1,660 crore.
The Bengaluru-based entity’s FY25 results reflect a maturing UPI market, where transaction volumes grew 45% YoY but competition squeezed margins.
FY25 Financial Breakdown: Losses Narrow Despite Revenue Pressure
Amazon Pay’s FY25 filings reveal cost discipline offsetting the revenue slowdown, with expenses dropping 7% amid optimized marketing.
| Metric | FY24 | FY25 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹2,365 Cr | ₹2,195 Cr | -7% |
| Net Loss | ₹911 Cr | ₹866 Cr | -5% |
| Total Expenses | ₹3,280 Cr | ₹3,061 Cr | -7% |
| Employee Benefits | ₹216 Cr | ₹213 Cr | -1% |
| Advertising & Promotions | N/A | N/A | Optimized |
- Revenue Sources: Primarily UPI transactions, movie/travel bookings via partners like BookMyShow and MakeMyTrip.
- Expense Efficiency: Lower ad spends and payment processing costs (down from ₹879 Cr in FY21, but stable YoY).
- Funding: ₹1,450 Cr share issuance in FY25 from Amazon entities.
Strategic Shifts: Partnerships and UPI Dominance
Amazon Pay’s FY25 focus on partnerships drove transaction growth, with 98 million UPI transactions in August 2025 (up from prior months).
- Key Ties: IRCTC for train bookings, Kuvera for wealth management, RedBus for travel.
- Market Share: Ranks fourth in UPI facilitators, behind PhonePe, Google Pay, and Paytm.
- Competitive Pressures: Paytm’s Q2 FY25 revenue fell 34% to ₹1,660 Cr, highlighting sector challenges.
Outlook: Scaling with RBI Licenses and Infusions
With the PA license (February 2024) and wallet approval, Amazon Pay eyes 10-15% FY26 growth, backed by ₹600 Cr infusion in May 2025. UPI’s 45% YoY surge supports this.
Conclusion: Amazon Pay’s Steady Recovery
Amazon Pay India’s ₹866 Cr FY25 loss (down 5%) amid 7% revenue to ₹2,195 Cr shows cost controls in action. As partnerships expand, profitability nears. For fintech, it’s a resilient play—will UPI dominance deliver? The transactions tally. ET
