Paytm Q1: Loss widens to Rs 838.9 cr, total income declines 33.5%

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2 min read Last Updated : Jul 19 2024 | 1:01 PM IST


One97 Communications (OCL), which operates Paytm, on Friday reported a wider consolidated loss of Rs 838.9 crore in the first quarter of FY25 (Q1 FY25), compared to Rs 357 crore in the same period last year.


Sequentially, losses expanded from Rs 549.6 crore in Q4 FY24. The Noida-based fintech company’s revenues crashed after the Reserve Bank of India (RBI) early last year placed crippling restrictions on an associate entity, Paytm Payments Bank.


Paytm’s total income declined 33.5 per cent year-on-year (Y-o-Y) to Rs 1639.1 crore in Q1 FY25 from Rs 2464.2 crore in Q1 FY24. Sequentially, total revenues declined 31 per cent from Rs 2398.8 crore in Q4 FY24.


Expenses declined 11.5 per cent Y-o-Y to Rs 2476.4 crore in Q1 FY25, compared to Rs 2,800.1 crore in Q1 FY24.


Quarter-on-quarter (Q-o-Q), total expenses reduced about 8 per cent from Rs 2691.4 crore in Q4 FY24.


Paytm said its monthly transacting users (MTUs) – the number of users who have completed at least one transaction in a given month – have declined since January. The company had about 104 million MTUs at the start of the year and the number declined 25 per cent to 78 million at the end of June.


Cumulative merchant subscriptions were at 10.9 million at the end of the June quarter, up from 10.7 million in Q4 FY24. In the last quarter of FY24, the company had said about 1 million merchants had become inactive.


The company terminated the disbursement of its buy now, pay later (BNPL) product, Paytm Postpaid, in Q4 FY24.


Since then, the total value of its disbursements, including merchant loans and personal loans, has fallen from Rs 5,079 crore in Q4 FY24 to Rs 5,008 crore in Q1 FY25.


Y-o-Y, disbursements have seen a steep fall of about 66 per cent from Rs 14,845 crore it disbursed in Q1FY24. Last year’s numbers included postpaid loans.


The company said it is working to reactivate dormant Unified Payments Interface (UPI) accounts with a “stringent focus on compliance first”.  


In its earnings report for Q4 FY24, the company had said that it will see the full financial impact of RBI’s action on its operations in Q1 FY25.

First Published: Jul 19 2024 | 12:56 PM IST