News

Published: January 20, 2024
Updated: January 20, 2024

Paytm's Q3 Triumph: 38% Revenue Surge and Remarkable Loan Distribution

In a financial spectacle, Paytm's parent company, One97 Communications, recorded an impressive 38% surge in consolidated revenue for Q3 ending December 2023, reaching Rs 2850 crore. Losses shrank to Rs 222 crore, a significant improvement from Rs 392 crore in the previous fiscal year.

Robust Payment Business Growth:

The payment business witnessed a stellar 45% YoY growth, contributing Rs 1730 crore. This growth was propelled by a boost in gross merchandise value (GMV) and increased subscription revenue.

Net Payment Margin Soars by 63%:

Notably, the net payment margin saw a substantial 63% improvement, reaching Rs 748 crore in Q3FY24 YoY. This improvement reflects the success of non-UPI instruments, including post-paid, EMI, cards, and device subscription charges.

Merchant Subscriptions and Loan Milestones:

Paytm achieved significant milestones with 1.06 crore merchant subscriptions, marking a 49 lakh YoY increase. Despite a minor impact on post-paid loans under Rs 50,000, total loans disbursed surged to Rs 15,535 crore, a noteworthy 56% increase YoY.

Navigating Regulatory Challenges:

Despite regulatory challenges, Paytm's financial services revenue stood at Rs 607 crore, up 6.3% from the previous quarter. The company plans to navigate uncertainties by calibrating postpaid services in Q4 FY2024.

High-Ticket Loan Business and Future Projections:

Paytm sees a promising future in high-ticket loans, distributing Rs 490 crore in Q3. With UBS projecting EBITDA breakeven in 2025 and a 20% EBITDA margin by FY28, Paytm is strategically positioned for sustained growth.

Resilient Performance Amidst Market Shifts:

Paytm's Q3 performance showcases not just growth but resilience in the face of challenges. With impressive percentage surges and strategic shifts in focus, Paytm is poised for a robust future in the dynamic financial landscape.