Paytm’s loan distribution business scales to 9.2 million

According to the latest data, the number of loans disbursed grew 224% y-o-y to 9.2 million loans in the quarter ended September 2022, while the value of loans disbursed grew 482% y-o-y to ₹7,313 crore ($894 million).

“We continue to see growth and upsell opportunities in this business, while we work with our partners to remain focused on the quality of the book,” Paytm aka One 97 Communications said. 

It further stated that the company also continue to strengthen its leadership in offline payments, with deployment of 4.8 million devices at merchant stores across the country. 

Paytm, in an official statement 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.”

Apart from loan distribution business, Paytm Super App also continues to see heightened consumer engagement for the company’s comprehensive payment offerings. 

“We continue to drive user engagement, with the average MTU (Monthly Transacting Users) for the quarter ended September 2022 at 79.7 million, registering a growth of 39% Y-o-Y,” it stated.

“The total merchant GMV (Gross Merchandise Value) processed through our platform for the quarter ended September 2022 aggregated to ₹3.18 Lakh Cr ($39 billion), marking a y-o-y growth of 63%,” it added. 

According to JP Morgan analysts, Paytm’s annualized loan disbursement run-rate stands at ~Rs290 billion as of Aug-22 and its penetration stands at 4% and <0.5% of MTU for postpaid and personal loans respectively, and 4% of device merchants for merchant loans (as at Jun-22).

The company also noted that its portfolio credit losses are running below levels underwritten by financing partners, which can additionally drive the scope for incentive income on its syndicated loan book.