Paytm monthly transacting customers surge to 89 mn, leads offline payments with 6.4 mn devices
Leading digital payments and financial services company Paytm on Monday announced its business operating performance for the two months that ended February 2023.
Consumer engagement on the Paytm Super App continues to see robust growth with the average Monthly Transacting Users (MTU) for the two months at 89 million, registering a growth of 28 percent (year-on-year).
The company said it is seeing consistent growth in merchant payments volume with the total merchant Gross Merchandise Value (GMV) processed through the platform for the two months ended February 2023 aggregating to Rs 2.34 lakh crore ($28.3 billion), marking a year-on-year growth of 41 percent.
"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," said Paytm, which pioneered QR and mobile payments in India.
The fintech giant's focus on creating additional payment monetization with subscription services has continued to expand, it added.
Paytm's leadership in offline payments strengthened further with 6.4 million merchants now paying subscriptions for payment devices, an increase of 0.3 million in the month of February.
"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," Paytm said in its stock exchange filing.
The company's loan distribution business, in partnership with top lenders, continues to witness accelerated growth with disbursements through the platform for the two months ended February 2023 growing 286 percent year-on-year to Rs 8,086 crore ($979 million). The number of loans disbursed in the two months surged 94 percent to 7.9 million loans.
Paytm said it continues to work with its lending partners to remain focused on the quality of the book, adding its payments consumer and merchant base offers a large addressable market.
In its recently announced October-December quarter (Q3FY23) results, Paytm achieved the milestone of operating profitability, nine months ahead of its September 2023 guidance.
The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) before employee stock ownership plan (ESOP) cost stood at Rs 31 crore with EBITDA before ESOP margin at 2 percent of revenues as compared to (27 per cent) a year ago.
Its revenue from operations increased 42 percent year-on-year to Rs 2,062 crore, driven by growth in its core payments business and sustained growth momentum in the credit business and commerce business.
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