Digital financial services firm One97 Communications, which owns Paytm brand, has reported a widening consolidated loss to Rs 571 crore for the September 2022 quarter (Q2FY23), compared with a loss of Rs 481 crore in the corresponding period last year. Its consolidated revenue from operations during July-September 2022 jumped nearly 76 per cent to Rs 1,914 crore, against Rs 1,086.4 crore in the year-ago period.
Paytm’s revenue from ‘payment services to consumers’ registered a jump of 55 per cent year-on-year to Rs 549 crore, while payment services to merchants went up by 56 per cent to Rs 624 crore YoY.
“This was achieved without any UPI incentive during the quarter,” the company said.
Paytm’s lending vertical has been seeing accelerated growth with revenue from the financial services business was Rs 349 crore, up 293 per cent YoY and 29 per cent QoQ, accounting for 18 per cent of total revenue, compared to 8 per cent in Q2FY22. The company disbursed 9.2 million loans in Q2FY23, up 224 per cent YoY and 8 per cent QoQ, amounting to Rs 7,313 crore, marking an increase of 482 per cent YoY and 32 per cent QoQ.
“With a stronger improvement in credit distribution business in this quarter across all its products, the company…sees ‘a long growth runway ahead’. Paytm postpaid disbursements were Rs 4,050 crore, growing 449 per cent YoY and 20 per cent QoQ, driven by increased user adoption and further widening of the merchant acceptance network to 15 million merchants,” Paytm said.
It added that the company disbursed personal loans amounting to Rs 2,055 crore (736 per cent YoY and 53 per cent QoQ growth), with more than 40 per cent of disbursements in this quarter made to existing postpaid users. With a growth in devices business, merchant loan disbursements stood at Rs 1,208 crore, increasing by 342 per cent YoY and 46 per cent QoQ.
The company’s net payment margin (calculated as payments revenues plus other operating revenues, less payment processing cost) increased multi-fold to Rs 443 crore on year-on-year basis on account of improved monetisation and continued focus on reduction in payment processing charges.
The company also reported 55 per cent YoY growth in commerce and cloud revenues at Rs 377 crore, with commerce revenue increasing 49 per cent YoY due to higher ticketing sales, while cloud revenues were up 58 per cent YoY as advertising revenues started recovering while credit card revenues continue to scale as well.
“Paytm’s Q2FY23 results reflect the strength of its business model, and indicate healthy traction across all of its businesses, continuing the growth momentum across operating and financial metrics. The company reiterated that its on track to achieve EBITDA before ESOP cost profitability by quarter ending September 2023,” it said.
(With Inputs From PTI)
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