Paytm’s loan disbursals rise 374% yoy in first two months of Q3


Vijay Shekhar Sharma-backed Paytm touched a new milestone in offline payment leadership by recording more than 5.5 million merchants by end of November month. The fintech sustained growth in payments and loan distributions. Its loan disbursals came in at an annualised run rate of 39,000 crore ($4.8 billion) in November. The Noida-based digital payments giant continued to witness accelerated growth with disbursements through its platform.

As per the regulatory filing, in the two months of Q3FY23 that ended November 2022, the company’s value of loans disbursed jumped by 374% y-o-y to 6,292 crore, while the number of loans disbursed grew 150% y-o-y to 6.8 million cumulative loans.

In the filing, Paytm said, “We see a significant growth runway given low current penetration, while we continue to work with our partners to remain focused on the quality of the book.”

Further, Paytm stated that they continued to strengthen their leadership in offline payments, with more than 5.5 million merchants now paying a subscription for payment devices. In the two months that ended November 2021, Paytm’s merchants stood at 1.6 million, that being said, the company added more than 3.9 million devices in 12 months till November 2022. In Q2FY23, the company’s total devices deployed stood at 4.8 million merchants.

It said, “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.”

Going forward, the company’s Paytm Super App continues to see growing consumer engagement with the average MTU for the two months ended November 2022 at 84 million, garnering a growth of 33% y-o-y.

Also, in the first two months of Q3FY23, the company’s total merchant GMV processed through its platform aggregated to 2.28 lakh crore ($28 billion) — recording a growth of 37% y-o-y.

Paytm stated that over the past few quarters their focus continues to be on payment volumes that generate profitability for us, either through net payments margin or from direct upsell potential.

Paytm stock will be in focus this week as the company’s board of directors is scheduled to meet on December 13 to consider a proposal for the buyback of the fully paid-up equity shares of the company.

On Monday, Paytm stock traded on a volatile note tracking a bearish markets tone. At around 9.42 am, the stock performed at 540.55 apiece down by 0.82%. The stock has touched an intraday high and low of 554.70 apiece and 537 apiece respectively. The company’s market cap is currently over 35,122 crore.

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