Paytm, the payments company has shown growth, in Q1 with a remarkable 39.4% increase in revenue to Rs 2,341 crore. The company’s losses have also decreased by 45% highlighting its performance. With a loan distribution business and an expanding user base of 92 million Paytm remains a key player, in India’s digital payment sector.
Paytm, the payments firm, has just unveiled its financial results for the June quarter (Q1). The company’s revenue soared by an impressive 39.4 percent to Rs 2,341 crore, showcasing its growth. Paytm also demonstrated its financial prowess by remarkably narrowing its losses by a whopping 45 percent, reducing them to Rs 358 crore compared to the previous year’s Q1, which reported losses of Rs 645 crore.
Paytm exhibited improvements across various metrics. The net payment margin experienced a noteworthy surge, primarily attributed to the increase in merchant subscription revenues. Additionally, the payment processing margin witnessed a boost due to the outstanding growth of non-UPI transactions, including card and EMI instruments.
The remarkable growth in revenue from the payments business, escalated by a commendable 31 percent, amounting to Rs 1,414 crore is also being reported. The net payment margin was impressive, surging by a stunning 69% year-on-year to reach Rs 648 crore. The company’s financial services division also enjoyed a 93 percent revenue surge, generating an impressive Rs 522 crore, showcasing the success of its rapidly growing lending marketplace platform.
Paytm’s financial prowess is further evidenced by its cash balance, which surged to an impressive Rs 8,367 crore during the quarter ending June 2023, compared to Rs 8,275 crore recorded in the previous quarter ending March 2023. Notably, Paytm’s credit distribution business experienced a jaw-dropping 167 percent year-on-year (YoY) growth in the June quarter, disbursing an astonishing Rs 14,845 crore in loan value. This incredible growth translated into a remarkable 51 percent increase in the overall number of loans facilitated on the payments platform, reaching an impressive 1.28 crore loans. Paytm’s ingenious commission-based model for distributing credit on its platform surely played a pivotal role in driving this success.
Paytm continues to hold its ground as the third-largest player in the UPI ecosystem, with an overwhelming nine billion monthly transactions and transaction value of close to Rs 15 lakh crore. With a commendable market share of approximately 13 percent on the UPI platform, Paytm’s influence and reach are undeniable. However, it’s worth noting that rivals PhonePe and Google Pay currently occupy the top two spots in this highly competitive ecosystem.
Paytm has diligently deployed an impressive 11 lakh devices during Q1FY24, bolstering its monthly transacting user base to a remarkable 9.2 crore. This growth signifies a remarkable 23 percent year-on-year jump from the previous year’s June quarter. The company’s arsenal of payment devices, including point-of-sale (POS) devices and the innovative soundboxes facilitating scan-and-pay transactions, has played a pivotal role in driving this surge. Both types of devices have proven to be lucrative revenue streams for the company, as it earns monthly rent from their deployment.
Paytm currently boasts seven financial partnerships for loan distribution and plans to onboard three to four more players during this fiscal year. Such strategic moves indicate the company’s relentless pursuit of excellence and growth. Moreover, Paytm’s recent loan distribution partnership with Shriram Finance further underlines its dedication to expanding its financial services offerings.
In the financial markets, shares of Paytm’s parent company, One97 Communications Ltd, experienced some fluctuations, closing at Rs 843.55 a piece on the BSE on July 21. Despite a slight drop of 0.89 percent from the previous close, Paytm’s performance and potential remain compelling prospects for investors and stakeholders alike.
