(Reuters) – India’s One 97 Communications Ltd reported a larger fourth quarter loss on Friday due to increased expenses in marketing, payment processing and employee benefits.

Although the company stated in April that it expects to become operationally profitable in September 2023. Analysts have expressed concern over Paytm’s business model with Macquarie Research stating Paytm has “too many hands in too many pie”

The bank’s regulatory audit has led to a drop in its shares of 57%, so it is now worth less than half the value.

Noida, the company’s headquarters, stated that it is on track to achieve its profitability targets.

Paytm (NASDAQ:) competes in India with Walmart (NYSE.) Inc’s PhonePe, India’s online-payments marketplace, reported that its revenue increased 89% to 15.41 million rupees in the quarter. For the three-months ended March 30, Paytm reported a net loss in excess of 7.63 billion Rupees (97.97 millions), compared to a loss last year of 4.44 billion.

The company’s payment processing costs soared by 52% and the employee benefits expense jumped 148%. This drove total expenses up 78%.

($1 = 77.8266 Indian dollars)