PicPay sees expenses skyrocket and closes first half with huge loss

According to PicPay, in the first half of this year the company followed the strategy of diversifying its portfolio.

Image: Diego Thomazini / shutterstock.com

Estimated reading time: 3 minutes

PicPay is having to deal with a huge hole. The company had a loss of R$ 663.2 million in the first six months of this year, an increase of 87.3% in relation to what was registered in the same period last year. Personnel and administrative expenses also increased by 191.3%, reaching R$1.2 billion.

In relation to the gross result of financial intermediation, PicPay can observe an increase of 160.6%, reaching R$ 411.6 million. Another high record came from the company’s service revenues, which grew 218.5%, to R$ 477 million.

The number of registered users grew by 29% to just over 71 million, and the total volume of monthly active users increased by 95% to 32.1 million. With R$ 85.7 billion, the volume of payments (TPV) also expanded, with an increase of 177%.

PicPay followed the strategy of diversifying its portfolio

According to PicPay, in the first half of this year the company followed the strategy of diversifying its portfolio, launching different products such as open banking, salary portability, credit monitoring, vehicle debt management with IPVA and fine, FGTS anticipation, between others.

The company points out that for the second half of this year there is already a “roadmap” of product launches and very powerful services, “facilitating more and more the day to day of our customers and partner retailers”.

PicPay also highlights that, until September 2021, promotion and development expenses were borne by the J&F holding, which owned the brand. Thus, when expenses of this nature are compared, the increase this year is clear. In fact, this year alone, the partners have already subscribed to R$ 1 billion in the company’s capital increases.

Reinforcement arrives at PicPay to help the company further expand its business

Recently, PicPay announced the hiring of Bruno Guarnieri as vice president of PicPay Store and e-commerce projects. The executive has more than 20 years of experience in the market, having already been present in technology companies and strategic consulting.

Guarnieri joins PicPay’s team with the aim of stimulating the institution’s non-financial products marketplace. This operation almost doubled the company’s sales volume, reaching R$ 800 million, and reached an average of 230 thousand daily transactions in the first six months of this year.

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Image: Diego Thomazini / shutterstock.com

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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