2 min read.Updated: 27 Nov 2021, 12:07 PM ISTLivemint
Paytm Q2 results: Revenues rose to ₹1,086.4 crore - a rise of 64% - from the year earlier levels
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One 97 Communications Ltd, the parent of fintech firm Paytm, today said its revenue from operations grew 64% year-on-year ₹1,090 crore for the quarter ended September 2021, driven by 52% growth in non-UPI payment volumes (GMV) and strong growth in financial services and other revenue. Paytm, reporting its earnings publicly for the first time since listing this month, reported a consolidated net loss of ₹473 crore, compared with ₹437 crore in the same period a year earlier. Expenses jumped to nearly ₹1,600 crore from ₹1,170 crore a year ago.
"We have maintained the growth momentum in our payments services business, expanded our financial services business aggressively and are on our way to pre-COVID volumes for commerce and cloud services," Paytm's management said in a statement, adding that the company was well funded.
“We are well funded with pro forma cash, cash equivalent and investable balance of ₹11,000 crore ( ₹2900 crore as of September 2021 and ₹8100 crore of net IPO proceeds) and have a large cushion of ungranted ESOPs," the company said.
The company’s GMV or Gross Merchandise Value for Q2 FY 2022 was ₹1,95,600 crore, up by 107% Y-o-Y and the growth momentum continued in October 2021, where the GMV at ₹83,200 crore was up 131% Y-o-Y, the company said.
The average Monthly Transacting Users (“MTU") in Q2 FY 2022 rose 33% year-on-year 5.74 crore and the trajectory has continued in October 2021 with 6.3 crore MTUs, a growth of 35% Y-o-Y compared to 47 million MTUs in October 2020, the company said.
Paytm counts China's Ant Group and Japan's SoftBank Group Corp among its backers. It raised ₹18,300 crore in what was India's biggest initial public offering (IPO) this month, but made a dismal debut on the stock exchanges last week. The stock has since recouped some of the losses but is still down 17% from its issue price of ₹2,150.
Some analysts have questioned the company’s valuation and path to profitability. Paytm Chief Executive Officer Vijay Shekhar Sharma in a recent interview said the stock’s early tumble was “no indicator of the value of our company." “We are in it for the long haul," Sharma said. “We’ll put our heads down and execute."