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Paytm, operated by One97 Communications, on Monday said it witnessed robust year-on-year (y-o-y) growth in its lending and offline payments verticals, monthly transacting users (MTUs) and overall merchant payment volumes (GMV) in the second quarter of the financial year 2023.
Paytm’s loan disbursals stood at an annualised run rate of around ₹34,000 crore (close to $4.1 billion) in September, the company said in a filing with the BSE.
In Q2 FY23, Paytm disbursed 9.19 million loans, up from 2.84 million in Q2 FY21, marking a 224% y-o-y growth. In Q1FY23, the fintech company disbursed 8.5 million loans.
The value of loans disbursed grew 482% y-o-y in the quarter ended September 2022 to ₹7,313 core (close to $894 million) from ₹1,257 crore it recorded in the second quarter of the previous financial year.
The Noida-headquartered company provides loans to its customers and merchant partners in partnerships with non-banking finance companies (NBFCs) Clix Capital, Aditya Birla Finance, Piramal Finance, Fullerton India and Hero FinCorp. It earns a commission based on the loans it issues to Paytm postpaid users and merchants.
“We continue to see growth and upsell opportunities in this (lending) business, while we work with our partners to remain focused on the quality of the book,” the company said.
In the quarter ending September 2022, the fintech app also saw the number of average MTUs growing 39% y-o-y to 79.7 million, from close to 57 million in Q2 FY22.
Meanwhile, Paytm said that it has deployed 4.8 million devices at merchant stores across the country. By Q2 FY2022, the company had deployed 1.3 million devices.
Paytm provides these devices or soundboxes to its merchant partners on a subscription basis. “With our subscription as a service model, the strong adoption of devices drives higher payment volumes, and subscription revenues, while increasing the funnel for our merchant loan distribution,” the company said.
The total merchant GMV processed through our platform for the quarter that ended September 2022 aggregated to ₹3.18 lakh crore (close to $39 billion), marking a y-o-y growth of 63%.
Paytm recorded 89% y-o-y revenue growth in Q1 FY23 to ₹1,680 crore, while its Ebitda (before Esop) reduced to ₹275 crore. The company is aiming to turn operationally profitable by September 2023.
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John Miller has been writing about science, gaming, and tech culture for over a decade. He’s a top-rated reviewer with extensive experience helping people find the best deals on tech and more.
