Paytm, the leading digital payment platform, has announced a 7.5% increase in revenue from operations, reaching ₹2,518 crore. This growth comes as One 97 Communications, the company that runs Paytm, reported a loss of ₹291.7 crore in the second quarter of FY24, following a loss of ₹358 crore in the first quarter.
The surge in revenue from operations can be attributed to various factors such as an increase in gross merchandise value (GMV), merchant subscription revenues, and the growth of loans distributed through Paytm’s platform. Specifically, Paytm’s payments business revenue increased by 28% year on year, amounting to ₹1,524 crore. This revenue stream helps onboard customers and facilitates the distribution of credit products.
In the second quarter of FY24, Paytm distributed loans totaling ₹16,211 crore across its product offerings, including Paytm Postpaid, Personal Loans, and Merchant Loans. Overall, 1.18 crore unique users have taken a loan through Paytm’s platform as of September 2023.
Furthermore, Paytm achieved a remarkable 41% year-on-year growth in gross merchandise value (GMV), amounting to ₹4.5 lakh crore in the second quarter. Despite not receiving any UPI incentives during this period, Paytm emphasized its focus on non-UPI instruments like postpaid, EMI, and cards, which contributed to the higher payment processing margin of 7-9 basis points.
The company also highlighted its efforts in user engagement, with a significant 33% year-on-year growth in Paytm App GMV and a 32% year-on-year growth in Paytm App transaction volume. This demonstrates the continued popularity and satisfaction of users with the Paytm app.
Paytm’s contribution profit experienced a noteworthy 69% year-on-year increase, reaching ₹1,426 crore. The margin also expanded by 13 percentage points to 57% in the same period. Additionally, the earnings before interest tax and amortization (EBITDA) before employee stock options increased by ₹319 crore, amounting to ₹153 crore.
Looking ahead, Paytm expects Q3 to capture online sales for the festive season, which will contribute to continued revenue growth. With its strong performance, Paytm aims to maintain its position as a leading player in the digital payment and lending industries.
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