Paytm’s Q1 Revenue Jumps 89% YoY To Rs 1,680 Cr, Loss Reduces By Rs 93 Cr QoQ

Paytm’s revenue from financial services grew 393% YoY during the quarter, led by massive growth in the loan distribution business. Monthly transacting users (MTU), grew 49% YoY to 74.8 million during the quarter.

Digital financial services giant One97 Communications that owns the brand Paytm on Friday reported its Q1FY23 results, with 89% year-on-year revenue growth to Rs 1,680 crore.

Ebitda loss (before ESOP) stood at Rs 275 crore in the quarter ended June, marking an improvement of Rs 93 crore Q-o-Q.

The company’s contribution profit grew 197% year-on-year to Rs 726 crore, leading increasing the contribution margin to 43% of revenue in comparison with 35% in Q4FY22. Contribution margin has improved on account of increased payment profitability and higher mix of high-margin businesses.

The company’s user engagement, measured by monthly transacting users (MTU), grew 49% YoY to 74.8 million during the quarter, while the total devices deployed increased to 3.8 million (2.8 million added in the past 12 months). This has resulted in a 101% YoY jump in gross merchandise value (GMV), which stood at Rs 3 lakh crore during the quarter.

Paytm’s payments services revenue grew 69% YoY (3% QoQ), supported by a rapid growth in user engagement, merchant base, use cases on the Paytm super app and subscription revenue from payment devices, the company said. Paytm undertook account level rationalisation among online merchants to focus on profitable GMV. Furthermore, there was no UPI incentive recorded during the quarter.

This has led to an increase in net payment margin to 35% from 17% YoY through reduction in payment processing charges, increase in subscription revenue, MTU growth on the platform and account level rationalization for online merchants.

The company’s revenue from financial services grew 393% YoY during the quarter, led by massive growth in Paytm’s loan distribution business. During the quarter, Paytm disbursed 8.5 million loans, representing a growth of 492% YoY and 30% QoQ.

The value of the loans disbursed stood at Rs 5,554 crore, marking a growth 779% YoY of 56% QoQ. Moreover, the company has now reached an annualised run rate of approximately Rs 24,000 crore of loan disbursements through its platform, with significant upside potential from increasing penetration.

*This is in partnership with BQ Prime BrandStudio