Paytm, the popular Indian digital payments company, has reported a 7.5% increase in revenue from operations in the second quarter of FY24. The company’s revenue reached ₹2,518 crore, compared to ₹2,341 crore in the first quarter. Overall, Paytm’s revenues grew by 32% year-on-year.
During the second quarter, Paytm distributed loans worth ₹16,211 crore through its platform. Since September, a total of 1.18 crore unique users have taken a loan using the platform. The company’s losses for the quarter amounted to ₹291.7 crore, following losses of ₹358 crore in the first quarter.
According to Paytm, the revenue growth was driven by an increase in gross merchandise value (GMV), merchant subscription revenues, and the distribution of loans through their platform. The company’s payments business revenue increased by 28% year-on-year to ₹1,524 crore. Paytm sees this business as an important way to onboard customers and facilitate the distribution of credit products.
In terms of product offerings, Paytm’s loans, including Paytm Postpaid, Personal Loans, and Merchant Loans, amounted to ₹16,211 crore in Q2 FY24. The company’s GMV also saw impressive growth, reaching ₹4.5 lakh crore, a 41% increase year-on-year. This growth in non-UPI instruments, such as postpaid, EMI, and cards, contributed to a payment processing margin at the higher end of the 7-9 basis point range.
Furthermore, Paytm saw a significant increase in merchant subscriptions for its devices, reaching 92 lakh by the end of the quarter. This represents a YoY increase of 44 lakh and a QoQ increase of 14 lakh.
Paytm’s focus on high-quality users and increasing engagement has paid off, with a 33% YoY growth in Paytm App GMV and a 32% YoY growth in Paytm App transaction volume. The company’s contribution profit also saw a significant increase, rising by 69% YoY to ₹1,426 crore, with a margin of 57%.
Lastly, Paytm’s earnings before interest tax and amortization (EBIDTA) before employee stock options increased by ₹319 crore to ₹153 crore.
Overall, Paytm’s strong financial performance and strategic focus on user engagement position the company as a dominant player in the Indian digital payments industry.
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