E-commerce firm Paytm Mall on Friday said its loss narrowed by 60 percent to Rs 479 crore in 2019-20 on account of reduction in assortment size, cashback and promotions. The company had posted a loss of Rs 1,171 crore in 2018-19.

"During the last fiscal year, we have streamlined business operations to improve our unit economics which has helped us in reducing losses by 60 per cent. Our efforts are to become profitable with hyperlocal outreach and initiatives which have already started giving positive results," Paytm Mall COO Abhishek Rajan was quoted as saying in a statement.

The company's total revenue for the reported financial year declined about 27 percent to Rs 703 crore as compared to Rs 968 crore in 2018-19.

"While there has been a 27 percent decline in revenue due to the overall reduction in assortment and categories, its hyperlocal initiative has started showing results that would lead to overall growth in the revenue over the next few quarters," the statement said. In the last fiscal year, Paytm Mall reduced logistics costs by relying on a strong third-party network of delivery firms, the statement said.

"The company over the last several months has done a deep analysis of the overall operations and zeroed in on elements including cashbacks, promotional campaigns, that were draining resources and increasing costs," it added. The company is promoting products that have a higher margin, it said.