Paytm loan disbursals grew 167% in Q1
One97 Telecomwho has Paytm The brand said on Wednesday that its loan payments grew by 167 per cent in April-June 2023 at Rs 14,845 crore.
For the quarter under review, the number of loans distributed grew by 51% to Rs 1.28 crore from Rs 0.85 crore in the same quarter last financial year.
“Our loan distribution business (in partnership with major lenders) continues to grow strongly with total payments through our platform for the quarter (April-June 2023) growing 167% year-on-year to Rs 14,845 crore ($1.8 billion), Paytm said in a post. An update on operating performance for the month and quarter ended June 2023 and provided to the exchanges.
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“Our focus remains on asset quality through continuous review of our partner group data and proactively tightening credit policy where needed. This is reflected in the growth in the value of loans disbursed in the quarter.”
Paytm said it has partnered with large NBFCs and banks and continues to focus on the quality of loans distributed through its platform. “We currently have seven active lending partners and are aiming to have three to four partners on board in FY24,” Paytm said.
On June 30, Paytm announced a loan distribution partnership with Shriram Finance Ltd.
The total value of the goods
The total Merchant Gross Merchandise Value (GMV) processed through the Paytm platform in April-June 2023 was $4.05 crore, reflecting a year-on-year growth of 37 per cent.
For the quarter ended March 31, 2023, GMV stood at ₹3.62 lakh crores, up 40 per cent from ₹2.59 lakh crores over the same quarter in previous financials.
“Our focus over the past few quarters has continued to be on payments volumes that generate profitability for us, either through net payments margin or from direct selling potential,” Paytm said.
Paytm sees continued expansion of consumer engagement in the Paytm Super App with the average number of users per month (MTU) from April to June 2023 increasing by 23% year-on-year to Rs.9.2 crore (Rs.7.5 crore).
The number of merchants paying a subscription to payment devices reached 7.9 million, an increase of 11,000 in the first quarter of this fiscal year.
“With our subscription-as-a-service model, strong hardware adoption drives subscription revenue and increases payments volumes, while increasing our merchant loan distribution funnel,” Paytm said.
You might recall that Paytm reported a consolidated net loss of ₹168 crore for the quarter ended March 31, 2023. This loss was much narrower than the net loss of ₹761 in the same quarter last year and a net loss of ₹392 crore in the last quarter of December.
Paytm reported an operating profit in the December 2022 quarter, three-quarters ahead of its previous guidance to hit that target by the September 2023 quarter.
The company reported an operating profit for the second consecutive quarter in the fourth quarter of fiscal ’23.
For the entire 2022-23 financial year, Paytm’s consolidated net loss came in at Rs.1,776 crore, much narrower than the net loss of Rs.2,396 crore in the previous financial year.