Paytm, a prominent payments and financial services company, has achieved a significant milestone in merchant payments with the deployment of 79 lakh devices. In Q1 FY24, the gross merchandise value (GMV) reached Rs 4.05 lakh crore, reflecting a year-on-year growth of 37 percent.
Paytm’s subscription devices, namely Soundbox and PoS machines, are gaining increasing acceptance among merchants, driving payment monetization.
As of June 2023, the number of merchants subscribing to Paytm’s payment devices has reached 79 lakh, indicating a growth of 4 lakh devices in the month and 11 lakh devices in the quarter ending on June 30. The Paytm Super App continues to witness high consumer engagement, with an average monthly transacting user (MTU) count of 9.2 crore, marking a 23 percent YoY growth.
The company’s focus remains on generating profitability through payment volumes that yield net payments margin or direct upsell potential.
Paytm’s credit distribution business, in collaboration with major lenders, has experienced robust growth. Total disbursements for the quarter surged by 167 percent YoY to Rs 14,845 crore ($1.8 billion), with 1.28 crore loans distributed, reflecting a 51 percent YoY growth.
Emphasizing asset quality, Paytm continuously reviews cohort data with partners and proactively tightens credit policies when necessary. This approach has contributed to the growth in the value of loans distributed during the quarter.
Currently, Paytm has seven active lending partners and aims to onboard 3-4 more partners in the fiscal year. It recently announced a loan distribution partnership with Shriram Finance Limited on June 30.
The higher disbursals in June can be attributed to pent-up demand from April being met in May, following a system upgrade.
In the previous quarter (Q4 FY23), Paytm reported a 51 percent YoY growth in revenue from operations, amounting to Rs 2,334 crore, driven by the growth in the payments and loan distribution business. The company also reported operating profit for the second consecutive quarter in Q4 FY23, with an EBITDA before ESOP cost of Rs 234 crore, including the full-year UPI incentive.
