Paytm, India’s top provider of digital financial services and mobile and QR payments, has further solidified its position as a market leader in the payments industry with more than 4.8 million deployed devices.
One 97 Communications Ltd., the parent company of Paytm, reported in a regulatory filing to the stock exchanges that the company disbursed 9.2 million loans in the second quarter of the fiscal year 2022–23, representing a volume increase of 224% year over year. At Rs 7,313 crore ($894 million), the total amount of loans disbursed during the quarter increased by 482% year over year.
According to an update on operating performance that One 97 Communications Ltd. provided to the stock exchanges, the company continues to see plenty of growth and upsell prospects in this business and is now concentrating on the quality of the book.
The company has released its monthly business operating performance update for the second quarter of the fiscal year 2022–23. Consumer engagement is at its peak on the Paytm Super App, and Paytm’s loan distribution business continues to experience rapid growth with disbursements at an annualised run rate of Rs 34,000 ($4.1 billion).
The company emphasised its subscription-as-a-service business model and claimed that the widespread use of devices is fueling larger payment volumes, subscription revenues, and the distribution of merchant loans.
The company’s extensive payment offerings continue to enjoy increasing user engagement thanks to the Paytm Super App. As a result, the company’s average monthly transactional users (MTU) for the quarter reached a new high of 79.7 million, up 39% year over year.
The Gross Merchandise Value (GMV), which is the amount of merchant payments processed through the platform, increased consistently for Paytm. The GMV for the second quarter of FY23 was Rs 3.18 lakh crore ($39 billion), up 63% from the same period last year.
After a solid start to the fiscal year, the company has gained more momentum with the strong performance in Q2 FY23.
The company’s revenue increased by Rs 1,680 crore, or 89 percent year on year, in the first quarter of 2022-2023, while the loss from EBITDA (before ESOP) decreased to Rs 275 crore, a Rs 93 crore improvement from the previous quarter.
Additionally, the business’ contribution profit increased by 197% year over year to Rs 726 crore, which resulted in an increase in contribution margin to 43% of revenues from 35% in the fourth quarter of 2021–2022.
