Paytm, India’s leading payments and financial services company, has announced its business operating performance for the two months ending May 2023. The company’s consumer engagement on the Paytm Super App continues to see a robust expansion of its consumer base, with an average Monthly Transacting Users (MTU) of 9.2 crore, registering a growth of 24 percent YoY.
Paytm has achieved a new milestone by deploying 75 lakh devices, an increase of 4 lakh devices in May, as it strengthens its leadership in offline payments. The QR pioneer has a subscription as a service model, which is driving subscription revenues and higher payment volumes, while increasing the funnel for its merchant loan distribution.
Paytm has seen consistent growth in merchant payments volume, with the total merchant Gross Merchandise Value (GMV) processed through the platform for the two months ending May 2023 aggregating to Rs. 2.65 lakh crore, marking a YoY growth of 35 percent. The company’s focus over the past few quarters has been on payment volumes that generate profitability through net payments margin or from direct upsell potential.
Paytm’s loan distribution business, in partnership with top lenders, continues to witness accelerated growth, with disbursements through the platform for the two months ending May 2023 growing 169 percent YoY to Rs. 9,618 crore. The number of loans disbursed in the two months surged 54 percent to 85 lakh loans.
The fintech giant currently has seven large lending partners and aims to onboard 3-4 partners in FY24 while it continues to work with lenders to remain focused on the quality of the book. The company has completed its system upgrade and its lending partner has resumed disbursing merchant loans, meeting some pent-up demand from April in May.
In its Q4FY23 results, Paytm reported a 51 percent YoY growth in revenue from operations to Rs. 2,334 crore, driven by growth in payments and loan distribution business. The company reported an operating profit for the second straight quarter, achieving its milestone of operating profitability much ahead of its September 2023 guidance. Paytm reported EBITDA before ESOP cost of Rs. 234 crore, including the full-year UPI incentive.
Paytm’s consistent growth in consumer base, merchant payments volume, and loan distribution business showcases the company’s strong performance in the Indian fintech industry. The company’s focus on payment volumes generating profitability and quality of the book highlights its commitment to long-term sustainability and growth.
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