One97 Communications, which owns Paytm brand, on Wednesday said that its loan disbursements grew 167 per cent in April-June 2023 at ₹14,845 crore.
For the quarter under review, the number of loans distributed grew 51 per cent to 1.28 crore from 0.85 crore in the same quarter last fiscal.
“Our loan distribution business (in partnership with large lenders) continues to witness robust growth with total disbursements through our platform for the quarter (April-June 2023) growing 167 per cent Y-o-Y to ₹14,845 crore ($ 1.8 billion)”, Paytm said in its latest operating performance update for the month and quarter ended June 2023 and filed with the stock exchanges.
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“Our focus remains on the asset quality by continuously reviewing with our partners cohort data and tightening credit policy wherever needed proactively. This reflects in the growth of value of loans disbursed in the quarter”
Paytm said that it has partnered with large NBFCs and Banks and continue to focus on quality of loans distributed through its platform. “We currently have seven active lending partners and we aim to onboard three-four partners in FY24”, Paytm said.
On June 30, Paytm announced loan distribution partnership with Shriram Finance Ltd.
GROSS MERCHANDISE VALUE
The total merchant Gross Merchandise Value (GMV) processed through the Paytm platform for April-June 2023 stood at ₹4.05 lakh crore, reflecting a year-on-year growth of 37 per cent.
For the quarter ended March 31, 2023, the GMV stood at ₹3.62 lakh crore, up 40 per cent over ₹2.59 lakh crore for the same quarter in previous fiscal.
“Our focus over the past few quarters continues to be on payment volumes that generate profitability for us, either through net payments margin or from direct upsell potential”, Paytm said.
Paytm sees continued expansion of consumer engagement on the Paytm Super App with average monthly transacting users (MTU) for April-June 2023 growing 23 per cent Y-o-Y to 9.2 crore (7.5 crore).
The number of merchants paying subscription for payment devices has reached 7.9 million, an increase of 11 lakh in the first quarter this fiscal.
“With our subscription as a service model, the strong adoption of devices drives subscription revenues and higher payment volumes, while increasing the funnel for our merchant loan distribution”, Paytm said.
It maybe recalled that Paytm reported a consolidated net loss of ₹168 crore for the quarter ended March 31, 2023. This loss was significantly narrower than the net loss of ₹761 in the same quarter last year and the net loss of ₹392 crore in the recent December quarter.
Paytm had reported operating profitability in the December 2022 quarter, three quarters ahead of its earlier guidance of achieving this target by the September 2023 quarter.
The company reported an operating profit for the second straight quarter in Q4FY23.
For the entire fiscal 2022-23, Paytm’s consolidated net loss came in at ₹1,776 crore, substantially narrower than the net loss of ₹2,396 crore in the previous fiscal.