Paytm, the leading payments and financial services company in India, has announced its business operating performance for the first quarter of the financial year 2024. The company has achieved significant growth in its merchant payments volume, with the deployment of 7.9 million devices and a Gross Merchandise Value (GMV) of Rs 4.05 lakh crore.
One of Paytm’s key focus areas has been payment monetization, and its subscription devices like Soundbox and PoS machines have gained increased acceptance among merchants. As of June 2023, the number of merchants paying for these payment devices has reached 7.9 million, representing an addition of 400,000 devices in the past month and 1.1 million devices in the quarter.
The Paytm Super App continues to engage consumers, with an average monthly transacting user base of 92 million, marking a 23% year-on-year growth. Additionally, the total merchant payments volume processed through the platform in the quarter amounted to Rs 4.05 lakh crore (USD 49.3 billion), reflecting a 37% YoY growth.
Paytm’s credit distribution business has also witnessed robust growth, with total disbursements for the quarter standing at Rs 14,845 crore (USD 1.8 billion), representing a significant 167% YoY surge. The company remains focused on maintaining the quality of its assets and regularly reviews cohort data with its partners to ensure a strong credit policy.
Currently, Paytm has seven active lending partners and aims to onboard three to four additional partners during the current fiscal year. On June 30, the company announced a new loan distribution partnership with Shriram Finance Limited. It is worth noting that the higher disbursals in June were a result of pent-up demand from April being accommodated in May, following a system upgrade.
In the previous quarter, Paytm reported a 51% YoY growth in revenue from operations, amounting to Rs 2,334 crore. The growth was primarily driven by the payments and loan distribution business. Notably, the company achieved operating profitability for the second consecutive quarter, reporting an EBITDA before ESOP cost of Rs 234 crore, inclusive of the full-year UPI incentive.
Paytm’s performance in Q1FY24 demonstrates its continued dominance in the Indian market as a leader in merchant payments. By deploying a large number of devices and achieving significant GMV growth, the company has solidified its position as a trusted and widely used payment platform. With its focus on payment volume and profitability, Paytm aims to further strengthen its position in the market while expanding its lending partnerships.
