Stock Report

Paytm Operating Performance Update for Q1 FY 2024

Posted On : 2023-07-05 09:07:09( TIMEZONE : IST )

Continued growth in payments and loan distribution business: Leadership in offline payments strengthens with 79 lakh devices deployed; disbursements of ₹5,227 Cr ($637 million) in the month of June 2023 through Paytm platform

- Continued expansion of consumer base with average monthly transacting users (MTU) at 9.2 Cr for quarter (average for three months ended June 2023), up 23% YoY

- Our leadership in payment monetization continues, as subscription for payment devices like Soundbox and POS machines continue to see increased acceptance by merchants. Number of merchants paying subscription for payment devices has reached 79 lakh as of June 2023, an increase of 4 lakh devices in the month and 11 lakh devices in the quarter

- Merchant Payment Volumes (GMV) for quarter (for three months ended June 2023) stood at ₹4.05 Lakh Cr ($49.3 billion), YoY growth of 37%

- Continued scale in our loan distribution business with disbursements of ₹14,845 Cr ($1.8 billion, YoY growth of 167%) and 1.28 Cr loans (YoY growth of 51%) distributed in the quarter (for three months ended June 2023)

Robust growth in MTU: The Paytm Super App continues to see growing consumer engagement with the average MTU for the quarter (for three months ended June 2023) at 9.2 crore, registering a growth of 23% YoY.

New milestone in offline payments leadership: We continue to strengthen our leadership in offline payments, with 79 lakh merchants now paying subscription for payment devices, an increase of 11 lakh devices in the quarter. 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.

Consistent growth in total merchant payments volume: The total merchant GMV processed through our platform for quarter (for three months ended June 2023) was ₹4.05 Lakh Cr ($49.3 billion), marking a YoY growth of 37%. 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.

Loan distribution business continues to scale: Our loan distribution business (in partnership with large lenders) continues to witness robust growth with total disbursements through our platform for the quarter (for three months ended June 2023) growing 167% YoY to ₹14,845 Cr ($1.8 billion).

MoM loan distribution trend in June reflects the higher disbursal in May which included pent-up demand for merchant loans from April due to one of our partners not disbursing as they were upgrading their systems.

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 distributed in the quarter.

We continue to build partnerships with large NBFCs and Banks. We currently have 7 active lending partners and we aim to onboard 3-4 partners in FY 2024. On 30 June 2023, we announced loan distribution partnership with Shriram Finance Limited.