Paytm, India’s leading digital payment platform, has reported a sequential growth of 7.5% in its revenue from operations, reaching ₹2,518 crore. This increase is attributed to various factors such as the rise in gross merchandise value (GMV), merchant subscription revenues, and the distribution of loans through its platform.
In the second quarter of FY24, Paytm’s parent company, One 97 Communications, recorded a loss of ₹291.7 crore. However, this represents an improvement compared to the first quarter’s loss of ₹358 crore.
Despite the loss, Paytm witnessed a significant year-on-year revenue growth of 32%. The company stated that this growth was driven the increase in GMV, merchant subscription revenues, and the growth of loans distributed through its platform.
Furthermore, Paytm reported a 28% year-on-year increase in its payments business revenue, amounting to ₹1,524 crore. The company emphasized that this segment plays a crucial role in customer onboarding and the distribution of credit products.
Paytm’s loan distribution services have been gaining traction, with 1.18 crore unique users availing loans through its platform the end of September 2023. In the second quarter alone, Paytm distributed loans amounting to ₹16,211 crore through its product offerings, including Paytm Postpaid, Personal Loans, and Merchant Loans.
The company’s gross merchandise value (GMV) also witnessed strong growth, increasing 41% year-on-year to reach ₹4.5 lakh crore in the second quarter. Paytm attributes this growth to the rise in non-UPI instruments such as postpaid, EMI, and cards.
Moreover, Paytm’s merchant subscription for devices reached 92 lakh the end of the quarter, reporting a noteworthy increase of 44 lakh year-on-year and 14 lakh quarter-on-quarter.
Paytm’s press release highlighted the company’s focus on acquiring high-quality users and increasing engagement. The Paytm app experienced a 33% year-on-year growth in GMV and a 32% year-on-year growth in transaction volume, demonstrating strong consumer engagement.
In terms of financial performance, Paytm’s contribution profit surged 69% year-on-year to reach ₹1,426 crore. The company’s margin also expanded 13 percent points to 57%. Additionally, Paytm’s earnings before interest, tax, and amortization (EBIDTA) before employee stock options rose ₹319 crore to reach ₹153 crore.
Overall, despite the loss incurred in the second quarter, Paytm’s revenue growth, loan distribution services, and increasing engagement reflect its strong position in the Indian digital payment market. The company continues to innovate and expand its offerings to meet the evolving needs of its users.